Crime Insurance Reminder

A common area I find lacking in the insurance plans I review is employee dishonesty coverage. Often, it's missing. Other times, the limits of coverage are too low.

It's estimated that half of all theft is committed by employees. For many employers, the idea of an employee stealing is not imaginable. However, a common theme that runs through all newspaper stories about embezzlement is someone saying, "Mary was a great employee. I never thought she would do this to us."

Most employee dishonesty insurance coverage sections include an exclusion for theft caused by someone who is known to have committed a past dishonest act. So, if you become aware that Joe in accounting admitted to shoplifting ten years ago, you have no coverage for dishonest acts by Joe. True even if the act was while he was a minor and was not working for you at the time.

Talk with your insurance adviser.

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