Are your employees stealing from you? Commercial Crime Insurance
Are your employees stealing from you?
According to the 2012 Marquet Report major embezzlements are increasing both in number and in size. Year to year, the number of embezzlements increased 11% while the average loss jumped from $750,000 – $1,400,000. Even a relatively minor theft could force a business to cease operations.
Following are a few protective measures your firm can put in place:
- In addition to running pre-employment criminal background checks, conduct mid-employment background checks.
- While some individuals are reluctant to provide negative comments on reference checks due to potential litigation, these remain useful ways of detecting a job candidate’s felonious tendencies.
- Data analytics software can be used to detect suspicious activities. For example, these programs will send up a red flag if an employee writes multiple checks to himself or to cash totaling round numbers such as $25,000 and $50,000.
- Review employee expense reports for duplicate entries in amounts, vendors and dates. Also be on the lookout out for multiple employees submitting the same expense.
- Verify vendors and account numbers. Vendor names identified only by initials or include a PO Box and not a street address often indicates suspicious activity.
When choosing commercial crime insurance, your KMRD representative can help you select coverage that matches your organization’s needs and exposures. We will also help you to set the right limit based upon the realization financial losses can snowball before fraud is detected and generally the insurance limit in-force at the time of your discovery is the only limit available to pay your claim.
At KMRD Partners, we realize expertise in assessing and transferring risk through proper insurance coverage is only part of what it takes to properly service our insureds. We also support them with experienced, knowledgeable claims management professionals who act as their advocates following one minute from normal.
KMRD reduces the overall cost of risk for clients by producing a greater value for each insurance dollar spent, while utilizing an enterprise risk management approach to engineer the optimal solution. The firm’s diagnostic process is supported by its unique collaborative technology, KMRD XCHANGE ®
We are dedicated to anticipating risk and helping firms recover from unplanned events that wait on the other side of one minute from normal.
To review your organization’s insurance coverage please contact your KMRD Partners relationship manager or e-mail us at contactus@kmrdpartners.com before one minute from normal strikes.
