Small business owners may be covered for damages that occur from forces of nature, fires, etc. But what they may have overlooked is commercial crime insurance that covers any losses caused by employees. Here’s a quick look at what it is and what it covers.
Organizations Lose Six Percent of Revenue
Theft, dishonesty and fraud by employees is estimated to cost U.S. businesses about six percent of their annual total revenue. That’s quite a chunk of the pie, but unfortunately, it’s part of the cost of doing business in today’s world. That’s where commercial crime insurance comes in to help mitigate these costs.
This type of insurance protects businesses from loss of money and inventory due to crime, such as employee embezzlement, forgery and robbery. Additional employee crimes can include computer fraud, wire transfer fraud, counterfeiting and more.
Review Your Policy
Typical business insurance excludes or limits claim reimbursement for the loss of cash and employee theft. That’s why it’s important to review your commercial crime insurance policy and consider whether you need to enhance your policy.
Whether you have a small business or large, it’s likely that you have already instituted programs and procedures to curb employee crime. Another effort to consider is taking stock of your insurance policies and discussing commercial crime insurance with a qualified agent. It can only help your bottom line.