Let’s Talk About Employee Dishonesty

Posted by Farrell Agencies on November 29, 2017

Let’s talk about Employee Dishonesty.

As business owners and managers, we take pride in the people we hire.  We believe in and trust our people. But what happens when that trust is broken? What happens when an employee steals from the business?

The first reaction to employee theft, of either property or money, is often an emotional response – anger, disappointment, shock and even embarrassment. It is important to know that these are normal feelings and you are not alone in this situation. Blaming yourself for “allowing” the theft to happen and taking the business loss, while sweeping the incident under the rug, helps no one. Employee dishonesty crime losses are common and continue to rise. 

Do not be afraid to talk about it. Do talk to your insurance broker.

At Farrell Agencies we can design insurance packages that include Employee Dishonesty Crime coverage. Together we can choose the right limit of insurance and deductible to protect your business operations. Our claims team is here to walk you through every stage of the process in the event of a loss.

The best defense is a good offense. Protect yourself from employee theft losses:

Know your people:

  • Conduct new hire background checks
  • Watch for signs of drastic lifestyle changes, addiction issues, dramatic objections to procedural changes
  • “Trusted” long term employees are not exempt

Know your business:

  • Conduct internal audits on regular and infrequent unannounced basis; externally by an outside firm annually
  • Install computer security systems and measures
  • Supervise your people so you know who is doing what and when

Implement controls:

  • Pre-number everything – purchase orders, business cheques, receipts
  • Split up cash handling duties amongst several people wherever possible
  • Establish protocol for employees to report theft or fraud by co-workers
  • Purchase Employee Dishonesty Crime Insurance from Farrell Agencies. 

We’re here to help. Contact us.

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