Employee theft insurance coverage is a type of insurance that provides protection for the loss of funds or property due to theft from an employee. Although some policies may differ, some policies also offer protection from loss of fund due to technology such as computer or fund transfer fraud. Due to the large number of theft committed by employees in the workplace, many businesses are starting to seek out employee theft insurance coverage.
Although companies can used security technology to reduce methods of theft, there is still a growing need to obtain employee theft insurance since the theft is occurring at all personnel levels including management within several companies. Before you purchase this type of insurance for your business, you should make sure that you understand how employee theft insurance coverage works.
Before you try to obtain coverage for your business, you first need to determine what your risk is. No matter how large or small your company may be, a theft of any kind of can do some type of financial damage to your company. As a general rule, most companies lose up to six percent of their revenue due to employee theft.
Depending upon the insurance company you select, you may be able to obtain a policy for up to one million dollars or more. To help you make your decision, you should talk with your insurance agent to see what he or she recommends and with other business owners with businesses similar to yours if possible as well.
Discovery of Theft
If you discover an employee is stealing from your company, you should contact your insurance company as soon as possible. Based on your policy requirements, you may have a deadline to notify them within a certain amount of days in order to make your claim. Therefore, you need to make sure that you read your policy very well and ask your agent questions if needed.
Proof of Loss
After you have contacted your insurance company, you will need to start gathering the documentation you need to show proof of the theft for your claim. Your documentation could be items such as bank statements, inventory reports, or daily transaction reports. Many standard claim forms can be obtained online if your insurance company has a website address. If not, you can request that the forms be mailed to you.
For the proof of loss, you will also have a certain amount of days to submit your documentation in order to keep the claim open. If you fail to meet the deadline, you may miss out on the opportunity to receive compensation for your loss.
About the Author: Tanya is a full-time writer and blogger with a passion for personal finance and insurance. She is also a regular contributor for CreditLoan.com.