Blog

Oct
24
Suspicious of Crime in the Workplace? California Commercial Insurance Can Handle That!

Crime insurance is a form of California commercial insurance that will protect you financially should your business be struck by employee fraud. This might take the shape of embezzlement, credit-card fraud, and computer fraud, burglary by a staff member or even expenses fraud.

Employee fraud costs American businesses millions of dollars annually. In some instances, employees have not been discovered for years as the fraud has involved small figures over a long period of time. This sort of activity can be easy to miss. It is important that all business have good security measures in place. There are also some indicators that you may keep an eye out for.

An employee who commits large-scale fraud often does so because of financial pressures. He or she will need to have the opportunity for misconduct, so the individual will often (but not always) be at middle management level. Warning signs might include constantly achieving or surpassing financial targets even when conditions would suggest this is unlikely, combined with difficulty providing documentation to support transactions. Employees found guilty of fraud may be living beyond their means and are less likely to take vacations.

Every business should have a written code of conduct that is supplied to all staff members, and it is important that staff feel comfortable approaching management should they suspect another employee of misconduct. Should you have evidence that a staff member has been misappropriating funds, contact the police who can investigate. Also consider protecting your business from this type of activity with California commercial insurance, as this is often the only way that business can recover lost funds.