Risky Business: Insurance Is Not An Optional Extra

As a small business owner, it is hard to imagine your employees stealing from you. In fact, most entrepreneurs treat their workers like family, and looking at one of them with suspicion can elicit guilt. Unfortunately, instances of employees stealing from businesses are not uncommon. If you run a small business, the losses incurred after a theft incident can significantly affect business operations or even lead to bankruptcy.

Fidelity and crime coverage

Fidelity and crime coverage is one of the covers provided under management liability insurance, and it protects an enterprise against theft of money or property and forgery by the workers. Unfortunately, most small business owners assume that this cover is crafted for medium and large businesses as they stand to lose more if an employee steals from them. However, this is not always the case. Here you will learn three reasons why your small business needs fidelity and crime insurance now more than ever.

1.Technology has complicated operations

 A few years ago, all business transactions were backed by receipts and written documents. The available paper trail made it easy for owners to account for expenditure, and it also discouraged employees from stealing. However, today, almost all transactions are done digitally. All you need is software to send invoices and receive receipts. This makes it easy for employees to create dummy accounts, transfer money to them, and delete evidence from local computers. If you have a fidelity and crime cover, you will receive compensation for the losses incurred.

2.Familiarity breeds negligence

As aforementioned, most small business owners view their employees as family. This is understandable since most small businesses have a few employees. While you may be trying to create a comfortable and friendly environment for your workers, not all of them may be grateful. Some may use this as a weakness against you and steal money without your knowledge. Therefore, the more familiar you become with your workers, the more you concerned you should get about getting fidelity and crime insurance.

3.The business stands to suffer

Every savvy entrepreneur understands the need to identify business risks and protect the investment against them. Employee theft is just as risky as getting your company sued for a bad product – the business stands to incur significant financial losses. Therefore, as you get product liability coverage and other primary covers, consider protecting the business assets and money against inside theft. You stand to gain if the risk occurs and you get compensation from the insurer.

Your general liability coverage will not help the business when an employee steals thousands of dollars and sends the enterprise on its knees. Purchase fidelity and crime liability coverage to protect your investment against such acts by your workers. Talk to an agent in your area to learn more about management liability insurance coverage.