Five Common Problems That Lead To Financial Losses
Is Your Business Protected?
A recent report issued by the Association of Certified Fraud Examiners, places the cost of employee fraud at 7% of annual revenues. Employers with less than 100 employees saw a median loss of $200,000 according to the ACFE. Another study performed by the Institute for Corporate Productivity and HR.com showed that 20% of all employers have some form of employee fraud.
There are at least five actions your business can take to reduce the possibility of having a loss in this area.
Manage These Risks
- Duties need to be separate. No one person should have authority to authorize transactions, approve checks, and maintain records
- Hire qualified people. Many small businesses tend to hire family members of people who do not have any financial background.
- Develop accounting procedures and review them regularly.
- Require everyone to take vacations.
- Complete background checks on all new employees.
Employee Dishonesty Insurance
Crime and employee dishonesty coverage, also known as fidelity insurance, is specifically designed to reimburse an employer for those types of losses. We can offer coverage for employee theft of money, securities, or property, written with a per loss limit, a per employee limit, or a per position limit. Employee dishonesty coverage is one of the key coverages provided in
At Roussel Insurance we strive for trust and reliability with our clients. Through our 32 years in the insurance business we have learned to achieve immediate and sustainable cost savings for businesses and individuals. We can help find you the right insurance options, so that no matter what your budget is we can minimize you’re spending and easily meet your needs.
This information is intended for the client, individual or entity to which it is addressed. These articles contain concepts and opinions, and are not intended to represent the consensus of the insurance or risk community, nor to provide professional legal or tax advice. Please seek professional legal or tax counsel before making any decisions. The information provided does not change or modify any insurance policy, only the actual terms of the in-force policies will govern claim settlements.