Even the most fervent business owners cannot safeguard their organizations and employees from every last threat — especially in today’s well-connected digital age. No matter the size or location, businesses of all kinds are vulnerable to different types of fraud. What’s more, even the most skilled and capable employees can often be responsible for fraudulent activity that leads to costly claims.

From employee errors and phishing to credit card forgery and property damage, there are a host of liabilities that can cause severe financial loss. That’s why fidelity and crime insurance protects businesses such as nonprofit organizations, private companies, and public companies from potential exposures.

At Doeren Mayhew Insurance Group, we are recognized as innovators in delivering business insurance solutions that safeguard your financial stability. We understand what it takes to protect your business from those who find weaknesses in your organization’s financial controls — and use them to their advantage.

In fact, according to Small Biz Genius, a typical employee theft scheme lasts 14 months before it’s detected and US businesses lose up to $110 million a day due to employee-related crimes. Read on to learn more about how Fidelity & Crime Insurance can protect your business’ long-term financial health — and help it recover in the face of employee crime.

Crime Insurance

This type of commercial insurance provides coverage for inventory and financial losses resulting from a variety of crimes, including burglary, robbery, forgery, and fraud. Crime insurance offers peace of mind in the face of criminal activity that standard commercial property policies and general liability insurance won’t cover. In fact, according to the Association of Certified Fraud Examiners (ACFE), the world’s largest anti-fraud organization, U.S. businesses report more than $400 billion in annual losses associated with exploitation and fraud.

Companies that are common targets for criminals often have the following characteristics:

  • High-value inventory
  • Lack of comprehensive workplace security system
  • Regularly engage in financial transactions that use checks, cash, or credit cards
  • Staff includes temporary or part-time employees, contractors, or volunteers

Fidelity Coverage

Commercial crime insurance can be inclusive of fidelity bonds, but this coverage applies to crimes committed internally within a business. Common examples of these types of crimes include employee theft, dishonesty, and fraud. No one wants to believe that a team member would intentionally steal or otherwise commit a crime against the company for whom they work, but it happens — and business owners need to be prepared.

This coverage can be useful to many businesses, but especially those with employees who have physical access to cash or products, can easily obtain sensitive information or data, or have an arrest record. That said, insurance companies, banks, and brokerage firms are some of the more vulnerable types of businesses to these types of violations.

What Types of Businesses Need Fidelity & Crime Insurance?
  • Public companies
  • Private companies
  • Nonprofit companies
  • Finance and tech companies
What Does Fidelity & Crime Insurance Help Cover?
  • Employee dishonesty
  • Theft of money and securities
  • Burglary or robbery
  • Forgery or alteration
  • Computer and funds transfer fraud
  • Money orders and counterfeit currency
  • Social engineering fraud and threats

How to Prevent Employee Crime

It’s an unfortunate reality that while business owners spend a lot of time, energy, and money protecting their organization from external threats, acts of fraud are committed by the very same people they hire to help grow their business. That said, there are many ways business owners can prevent employee crime:

  • Update the Hiring Process: Vet potential candidates more stringently with past employment verifications, reference checks, background checks, and financial background checks. An additional level of protection can be achieved if you identify high-risk positions and ensure all necessary checks are covered.
  • Boost Internal Controls: Reduce the risk of malicious activity on the part of your employees by considering the following internal controls: alert employees of countermeasures, conduct unannounced audits, enact a confidential reporting policy, and optimize financial checks and balances.
  • Secure Fidelity & Crime Insurance: Employee crime can go undetected for years, so business owners need to hedge the potential financial impact with Fidelity & Crime Insurance. This type of business insurance coverage can be customized to meet your needs and provide long-term protection from modern threats.

At Doeren Mayhew Insurance Group, we give business owners the peace of mind they need ahead of any number of significant crimes that may be committed against their organization. From cleaning businesses to financial companies, there are many different types of organizations that can benefit from the protection Fidelity & Crime Insurance can offer. Contact one of our trusted insurance agents to learn more today.