By taking an employee dishonesty insurance policy, you will have secured your business against any form of employee dishonesty including theft of money, insecurities or property. Crime coverage policy, employee dishonesty bond, fidelity bond, and fidelity insurance bond are other terms that can be used to refer to an employee dishonesty insurance policy.
Employees’ fraud is one of the major causes of business financial losses, which means that an employee dishonesty insurance policy is essential to any business. Enhancing security measures in your business is not enough since there are possibilities of financial losses due to employee shoplifting, vendor kickbacks, embezzlement, check tampering, phony invoices, and receipts.
If security cannot stop such losses from occurring, then it is wise to take an employee dishonesty insurance policy to cater for the same. There are several things you ought to know about an employee dishonesty insurance policy. The best thing about an employee dishonesty insurance policy is that it caters for several business losses under one cover.
Theft that is covered by an employee dishonesty insurance cover includes that done by employees, former employees, independent contractors, partners, and members. The insurance company of your choice should assist you in deciding which of the policies offered best suits your business.
Under the employee, dishonesty insurance policy are other optional coverage including data theft, money order, and counterfeit fraud, computer fraud, and forgery. Again, you should consult your insurance company on which one of the optional coverage favors your business.
Money orders, money, bank notes, securities, and tangible property are some of the properties that an employee dishonesty insurance policy covers against. Taking an insurance cover against these properties is ideal since you can take the step of investigating on the same unlike otherwise if you did not have them insured. You might require to do an audit on your business to discover any forms of employee dishonesty leading to losses of property.
It is possible to endorse an employee dishonesty insurance policy to a third party. That will be in such a case when the insured extends their services to another company and have to send its employees to the client’s place of work.
There are several exclusions in an employee dishonesty insurance policy which includes accounting errors, math errors, theft by the policyholder and government seizure, among others. An insurance policy cannot cover inevitable occurrences such as human errors. The insured must show that the occurrence of loss is from such a situation that is covered by the policy. It is also required that you notify your insurance company immediately upon noticing a loss resulting from employee dishonesty.