Employee Dishonesty

It's been a while since I ranted on this...

How much coverage do you have for employee dishonesty?  

Employee theft accounts for a huge percentage of business theft losses.  Yet, business owners have a mental block about buying enough coverage.  

My readers seem to like rules.  Here goes.

Rule 1: $100,000 of coverage is a minimum for any business with employees.

Rule 2: $250,000 of coverage is a minimum if you have more that 20 employees.

Rule 3: $500,000 is a minimum if you have more than 50 employees

Rule 4: Ignore the above and tell me how much an employee (or a group of employees) is going to steal from you and I will tell you how much more coverage to buy.

Start with the above minimums and get quotes up to $1,000,000 of coverage.  Review the cost of the extra coverage compared to the value of the additional protection.  Make a value judgement: coverage vs. premium.

Scott Simmonds, CPCU, ARM, CMC
"The Guy With the Big Insurance Brain"
Providing Unbiased Insurance Assurance℠