Employee Dishonesty Coverage

Employee Dishonesty Overview

Employee Dishonesty is an important part of a Commercial Crime policy.  Any business with employees is at risk of having property, money, or securities stolen by employees. Commercial Crime policies include Employee Dishonesty coverage and provide comprehensive coverage for this loss. Many business owners think their Package or BOP policy will provide coverage but unless a Commercial Package or BOP policy provides a specific loss limit for this type of loss, there is no coverage.  It is very important to ensure that if your Package or BOP does not include this coverage, you get it added by endorsement, or by getting a Commercial Crime Policy.

What is Employee Dishonesty?

This coverage addresses employee theft.  Type of employee theft can be through a fraudulent transfer of money, forgery of financial instruments such as checks, embezzlement, cyber-related theft, credit card fraud, or theft of property and cash/financial instruments.

Property theft can range from stealing stock and inventory, office equipment, and supplies to cash and securities/financial instruments.  Employee theft losses are a significant factor in revenue losses every year. 

Employee Dishonesty will usually cover employees, contractors, and temporary and seasonal employees. Volunteers are not always covered so if your company uses volunteers it is important to verify if they are covered and if not, have them added by endorsement.

What is Not Covered?

There are standard exclusions to most Employee Dishonesty policies.  The following are typically excluded:

·         Claims covered by other policies

·         Errors and Omissions

·         Dishonest Acts by the Company owner

·         Business Interruption and indirect losses

·         Errors in accounting

·         Wages and benefits received by employees

·         Future income losses

·         Theft from outside of your business

·         Cyber losses that did not originate from your employees

Protect your business by making sure that you have Employee Dishonesty coverage.  If your Package or BOP cannot include this, or you need higher limits than they can offer, you can get a Commercial Crime Policy.  This will have more comprehensive coverage and will allow more extensive coverage options and higher limits.

Many of our Package and BOP policies include options for Employee Dishonesty.  For businesses that need higher limits, our carriers can provide comprehensive Crime policies to keep your business protected.   Contact us today if you would like a free policy review or to get a no-obligation quote.