Over the last 5 years, 35% of private companies in Canada reported a loss due to crime in the workplace, such as employee theft , vandalism or counterfeiting; Theft was the most common type of loss suffered by those companies. Experts estimate that 96% of all companies will experience some type of employee theft without recognizing how the potential of their organization is reduced as a result of these activities.
Every company, whatever its size, is a potential target for white collar crime. the employee fraud is a fact of business life, even in the best-run organizations, and it can be expensive; employee theft causes companies to lose billions of dollars each year. Even if your company performs background projections, the separation of financial duties, educates employees on how to detect fraud or uses electronic fraud detection systems, it may still be vulnerable.
What Fidelity / Crime Insurance?
coverage Fidelity / Crime is a form of insurance that protects businesses against the loss of money, securities or stocks resulting from the crime. common insurance claims Fidelity / Crime allege employee dishonesty, embezzlement, forgery, theft, burglary safe, computer fraud, wire transfer fraud, counterfeiting and other criminal acts. These schemes involve all possible angles, taking advantage of any potential weakness in financial controls of your business. Liabilities hedged for Fidelity / Crime insurance fall into two main categories, although many policies combine the two types of coverage:
- cover money and pay interests for the money and securities taken break and enter, robbery, theft, disappearance and destruction.
- Employee Dishonesty coverage pays for losses caused by the most dishonest acts of employees, such as embezzlement and theft.
because of constant evolution and creative criminal element, there are other forms of insurance coverage Fidelity / Crime that can be added to your policy as extensions or amendments. These latest coverage can be modified for operations or specific requirements of your organization.
Why does your organization need Fidelity / Crime Insurance?
- the workplace fraud is commonplace, and your business can be victimized by anyone - even the employee "trusted". Any employer would like to believe that their employees are honest, hardworking and loyal. The sad truth is, these losses occur with alarming regularity. Most employees have discovered and convicted of embezzling really believed they were simply "borrowing" and intended to pay the money ... or so they thought. The reality is that the combination of need and opportunity can make seemingly honest employees are turning to crime.
- 80% of the workplace crime is carried out by employees.
- One in four has committed or witnessed fraud or abuse in the workplace.
- One in four said committing fraud against their employer has been with the company for over 10 years.
- Only one in three of those who have witnessed a crime in the workplace will report.
- a system of fraud could go undetected for years and could cost hundreds of thousands of dollars or more. It is difficult to absorb this kind of financial impact without feeling dramatic effects, even devastating. According to the Association of Certified Fraud Examiners (ACFE), the average company in North America loses 6% of its total annual revenue losses involving employees - averaging between $ 9- $ 12 per day per employee. For an organization with 40 employees, with 250 working days in a year, that amount to $ 0,000 (conservative) off its bottom line.
- Small businesses are often more vulnerable to fraud because they can financial controls or lack of inventory that large companies usually employ. So take the above point and add the theft and burglary, where small operations are particularly likely to be victims, losing at least 20 times more than big companies. In fact, shoplifting, theft and burglary have such a disproportionate pressure on small businesses as much disintegrate as a result.
Most insurance policies exclude or provide only nominal amounts ($ 5,000 or $ 10,000 limits) Fidelity / coverage of crime. We strongly recommend you to talk to your insurance broker to confirm your limits and guarantees
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