Internal Employee Theft

Sure you think about your business being protected from theft from outsiders, but what about from your employees? While it is important to have the right coverage to protect against crimes committed by outsiders, it’s also important to have the right coverage to protect against crimes committed by your employees.

Most commercial property policies written on a “special” or “all-risk” basis, cover most types of thefts, such as stock or other contents. Money and securities however, do NOT qualify as covered property so they’re not covered. It is a good idea to purchase a crime policy to cover theft of money and securities inside and outside the premises.

Employee theft is almost always excluded on a property policy written on a special basis. Even a crime policy doesn’t provide the coverage you need to protect against theft committed by an employee. This is why you need an employee theft policy. Most employee theft policies will cover theft of money, securities, and other property. Coverage may vary, so consult with your agent about specific coverage.

If you suspect theft you should contact the police for help. You could damage the investigation if you try to solve the crime yourself. You could risk liability to your company, co-workers, and even yourself. Keep your insurance carrier informed and work with the authorities to help get the situation resolved. Your insurance carrier will need absolute proof of the theft and the amount of the damages to help you recover your losses.