FGIB:Providing Employee Dishonesty Insurance

According to the Association of Certified Fraud Examiners (ACFE), business losses are estimated at $400 billion annually as a result of employee-related fraud and embezzlement crimes. Moreover, it’s not only large players that are victims of employee dishonesty and theft – small businesses are particularly vulnerable to occupation fraud. In fact, the ACFE estimates that the median loss suffered by organizations with fewer than 100 employees is $200,000.

There are several reasons behind employee fraud, including the opportunity available to them if proper controls are not in place, economic pressures, and a bad attitude from a disgruntled employee who feels the firm owes them, perhaps because he or she was passed up for a promotion.

The Need for Employee Dishonesty Coverage

Even with robust precautions in place to deter employee crime, there is always an opportunity for theft, fraud, and dishonesty. Financial Guaranty Insurance Brokers (FGIB) provides clients with Employee Dishonesty coverage to protect a wide range of businesses in the event of a loss. This coverage offers protection to employers from deliberate acts of dishonesty including theft of money, assets, property, and information. It may cover property the organization owns or leases, property of others in the organization’s custody, and property for which the organization has legal liability.

Employee Dishonesty insurance can be purchased as a separate policy or as part of a package policy. The amount of coverage depends on the scope of your operations. Employee Dishonesty policies can cover all employees or specific named employees or non-employees. Examples of non-employees include former employees, trustees, partners, directors, and temporary employees. Some programs will extend coverage to certain other non-employees who may have the opportunity to commit theft, such as equipment support technicians, consultants, and vendors. The professionals at FGIB will review in detail what is available and the coverage that makes sense for your organization.