Many companies today spend a great deal of time and money getting to know their staff. They conduct background screenings, handle ongoing compliance checks and even conduct drug screenings at random. However, employee fraud is still a risk for many companies. With the right type of business insurance, you can minimize the impact of this type of risk faced by your business.
Fraud is a Real Risk
Dishonest employees play a significant role in the overall health of many businesses. According to the Association of Certified Fraud Examiners, the typical business can lose as much as five percent of revenue to employee-related fraud. This is largely because of Internet-based theft and technologies that make it easy for thieves to gather information, such as customer credit card numbers. This type of risk can put a financial strain on your company to cover such losses, but also impacts your company's reputation.
How Do You Protect Your Company?
Employee dishonesty coverage, sometimes called employee fraud coverage, is a type of additional coverage you can elect to have as a component of your overall business insurance plan. It can help to minimize costs and risks associated with the actions of your employees, members, temporary workers, seasonal workers or management. It aids in most types of employee fraud, such as unauthorized electronic funds transfers, forgery, theft and credit card fraud, up to a certain amount per year.
Do you need this type of coverage? Most businesses should conduct an audit and discuss the risks associated with this type of employee fraud with their insurance agent to determine the value of adding such a policy. Unfortunately for many companies, the risks are high and employee fraud coverage is growing in need.
Though these policies remain very affordable compared to the type of risk they cover from, they are often overlooked. Don't assume your typical business insurance policy provides enough protection for this type of risk, especially for companies that handle payments with a larger number of employees. Take steps to minimize such risks through proper training and procedures, but also insure against them.
Get the protection you need. Call Budget Insurance Agency at (478) 788-9188 for more information on Augusta business insurance.