Business consultants are increasingly advising clients to buy crime insurance. Employees are more likely to rip you off, and technology is making it easier for them.
Don't assume your property policy covers employee theft. Often it doesn't. Crime coverage can be tacked onto your basic commercial policy and typically covers losses in two areas:
- Money and securities coverage, which covers items taken by third parties through burglary, robbery or theft.
- Employee dishonesty coverage, which pays for losses caused by your workers, including embezzlement and forgery.
A small-to-midsize company can expect to pay roughly $2,000 a year in premiums for $200,000 in coverage. Reduce your premiums by:
Asking for discounts if your business has security cameras or alarms.
Asking about available credits. Insurance companies can cut premiums if you have financial stability, experiencedand a strong system of internal controls.
Documenting your loss history by getting updated "loss-run reports", basically an itemized listing of claims, from insurers who have covered your firm.