Employee Dishonesty

What is Employee Dishonesty?

Employee Dishonesty could be defined as employee theft of money, securities, or property, forgery and fraud.

Most employers think that their insurance policies will cover all employee theft, as part of their liability policy. This is not always true and a mistake like this can often lead to unresolved claims due to no coverage.  Here are a few facts and suggestions for better managing and protecting yourself against employee theft.

  • As an employer, in order to obtain coverage you may have to provide information including but not limited to:
    • Your yearly profit statement, annual loss report and possibly a record of security measures you have in place to protect yourself and other employees valuables.
  • Some security measures you might want to consider as a further protection against employee theft could include:
    • Background checks for new hires
    • Have a written “No-Tolerance” policy in your employee manual
    • Using an outside payroll service
    • Consider installing security cameras
    • Train managers how to spot employee theft / identify theft indicators
    • Put procedures in place for handling employee theft
  • What should an employer do if they find a potential claim?
    • Your first reaction to discovering that one of your trusted employees has done the unthinkable might be to terminate them. It is always best to seek the legal counsel of a corporate attorney.  Certain laws may limit your options and force you to take specific disciplinary steps prior to termination.

If you would like more information on this subject or would like to obtain a quote of insurance, please feel free to call or stop by our Taunton FBinsure location at 128 Dean Street.

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