How Can Employee Dishonesty Cost You Money?

How Can Employee Dishonesty Cost You Money?

Good help can be hard to find, and sometimes you find out when something bad has already happened. Employee dishonesty can cost your business and your customers dearly, and that’s why it’s important to have insurance to cover a variety of scenarios. Your policy will delineate what exactly is covered on the employee dishonesty coverage form.

Funds Transfer Fraud

Depending on the type of business you run, a dishonest employee may enact a transfer of funds from a customer’s account into their own bank account. Similarly, a dishonest employee may transfer funds from your business’ bank account into their own, believing that you will never notice.

Alteration and Forgery

A dishonest employee may alter their paycheck or forge your name on a blank check in an attempt to steal from you. If the bank doesn’t catch the fraudulent check, you may face not only a monetary loss in the amount withdrawn, but also in the form of overdraft- and wiring fees.

Monetary Theft

Particularly in places with high-volume cash flow such as restaurants and bars, a dishonest employee can easily pocket cash intended for the register. Similarly, the employee may intercept a cash payment from a customer on the jobsite and report that it was never received.

Protection from employee dishonesty comes in many forms, and it is critical that you and your business are protected.

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