According to data gleaned from 2015 U.S. federal court cases, more than 80 percent of embezzlement cases occurred in businesses with fewer than 150 employees. Slightly less than half of cases involved companies with fewer than 25 employees. According to the U.S. Chamber of Commerce, employee theft costs U.S. businesses between $20 billion and $40 billion annually. Your Orlando Small Business Insurance policy protects you from myriad risks. Unfortunately, it can’t protect you from hiring dishonest employees. What can you do to prevent employee theft? Here are some tips to reduce your risks:
- Avoid entrusting all accounting responsibilities to one person. Instead of having financial documents sent directly to your accounting department, have them sent to someone else for initial review. This way you or your non-accounting designee will be in the loop.
- Don’t assume that “loyal and trusted” long-time employees are incapable of stealing from you. In many cases, the reason embezzlers are able to get away with their crimes for so long is precisely because they’re considered above reproach.
- Conduct annual background checks on employees with access to your financial data and money.
- Watch for red flags including employees who seem to be living above their means.
- Be aware that statistics show that more than half of embezzlers are women.
If you implement checks and balances, remain vigilant, and trust your gut, you’ll reduce your risks of falling victim to employee theft. Does your business insurance policy cover employee theft? Contact us at Newman Crane & Associates Insurance, (407) 859-3691, to discuss your existing policy and determine if it’s time to upgrade it.