Business Insurance Can Cover Losses Incurred Due to Employee Theft

Business Insurance Can Cover Losses Incurred Due to Employee Theft

Employee theft is something no employer likes to think about, and often assume it will never happen to them – until it does! Employee theft occurs across the country to the tune of an estimated $20 to $40 billion dollars annually. Fortunately, those who buy business insurance can be covered in the event that one or more of their employees decides to steal from them. The standard Business Owners Policy provides protection in a variety of situations, but not all of them. Employee theft is an area where most Business Owners Policies tend to fall short, often times leaving victims of employee theft or embezzlement without a leg to stand on. Fortunately, there are separate riders that can be purchased which will expand your insurance coverage into the realm of employee theft. These à la carte policies are sometimes referred to as Employee Fidelity Insurance and they apply to loss or damage to money, securities or other property as a result of employee theft. The coverage can apply even if the business insurance policy owner doesn’t know who is/was committing the theft, and whether they did it alone or with others. Theft is defined under Employee Fidelity Insurance as both the taking of property and includes forgery. The term “other property” refers to items other than money or securities, such as computers, office supplies, furniture, etc. but it does not apply to electronic data or computer programs. While Employee Fidelity Insurance can keep you covered in many situations, a few incidents exist that are excluded from the policies including: Theft committed by you, your partners, directors or representatives (other than an...