Make sure your business has enough “crime” insurance.
I read an alarming statistic from the American Management Association: as much as 20% of business failures can be traced back to employee theft over a sustained period of time.
Although this wasn’t included in the reporting, I bet most of these businesses did not have enough ‘crime’ insurance.
You see, most commercial insurance policies only include a nominal amount of protection against, say, an employee diverting company funds over an extended period of time.
And let’s face it. It’s the “trusted” employee who never takes a vacation and is “like family” who has the opportunity to rip you off.
To protect your business from employee crime, we’ll need to discuss increasing available coverage in your current policy or buy a separate policy.
This is relatively inexpensive insurance. But it does require that your business has certain common-sense financial controls.
The first question will be: does the same person who writes and sign checks also reconcile bank accounts?
Please don’t say “yes.” If this is true for your company, stop reading this now and fix that!
For more information on crime insurance, please don’t hesitate to give our office a call.