Benefits of crime insurance far outweigh the risks today’s business owner faces. As the leader of your organization, you want to trust your employees and the people you do business with. The reality is that no business is immune to the threat of crime and fraud. In fact, the Association of Certified Fraud Examiners estimates that a business can expect to lost 5% of its revenue to fraud each year.
Thankfully, companies can turn to crime insurance and it’s benefits such as:
- Coverage for the misuse of funds – It’s likely that a number of your employees have access to company funds or financial information. In some cases employees may abuse this access for personal gain. Crime insurance can protect organizations from the misuse or illegal transfer of funds. That helps your finances stay safe from internal criminal acts.
- Coverage for forgery and alteration – In some cases, your employees have access to checks that they can easily alter for their own gain. Effective crime insurance policies provide coverage for losses that result from the forgery or alteration of a check.
- Extortion safeguards – While it can be difficult to imagine, employees and outside actors can extort a company for funds by holding a director or officer hostage or through other illegal measures. Without the benefits of crime insurance, your organization would have no means to recoup these losses, which could devastate your bottom line.
- Reimbursement for computer fraud – Computers and emerging technologies have made it easier than ever for employees to carry out crimes against their employers. Crime insurance can provide a crucial layer of protection for any money or securities lost via computer fraud, which is another important piece to an effective cyber risk management program.
- Insurance for goods in transit – Goods in transit are particularly vulnerable to employee theft, and in some cases, you may not notice until it’s too late. If the theft takes place off your premises, it can be difficult to prove, often leading to long drawn out legal battles. Crime policies can provide ample protection for goods in transit and reduce the likelihood of extreme losses when you send or receive products.
Even if your organization takes the necessary precautions, you could still end up the victim of employee fraud and similar crimes. the only way to ensure your company has the protection it needs is through crime insurance.