Employee Theft Coverage in New York

Of course, you do your due diligence when hiring new staff. However, there are no guarantees in life and unfortunately, you need to protect yourself against employee theft.

An employee stealing money from an employer is unfortunately all too common. Many employees do this for years and are never caught, meaning glowing reviews from past employers may simply be positive because a worker has not been caught. In other cases, employees change or undergo some personal problems which makes them turn to dishonesty.

What Is Employee Theft Coverage?

Also known as employee dishonesty coverage, this type of insurance can be part of commercial crime policies or can be written alone. Employee theft coverage protects you in case your employees steal from you. This policy can protect you in the event workers steal money, assets or information from you.

This sort of coverage can protect you in cases of immediate discovery, such as when you notice money missing from a till at the end of a shift. It can also protect you in a situation where you discover embezzlement or dishonesty a long time after your employee has left their place of work.

How losses are covered depends on whether the policy is written on a discovery-sustained or a loss-sustained basis. A discovery policy covers you for losses discovered during the time your policy is active. If you have the policy in place and you realize your employee stole from you a year ago, you are covered. A loss-sustained policy covers you for losses that occur when you have the policy. If an employee steals from you this year and you have the policy in place, you are covered. The insurance may even cover you if the thief is never discovered or if your worker colluded with others in the theft.

Employee dishonesty coverage does not cover theft committed by directors or company owners or anyone who is not an employee. This coverage also does not include legal costs, losses caused by poor trading and loss of income.

Is an Employer Liable for Employee Theft?

Employee theft can cause significant problems, including loss of profits for the company. Today, however, many dishonest employees are not just stealing assets and cash. They are also stealing customer data. Dishonest employees can steal customer data to sell it or to commit identity fraud. In some cases, workers can also have access to customer money or accounts and may misuse or steal that money.

Employers can be sued in cases where an employee is dishonest and someone else experiences damages. In fact, plaintiffs will often target a large company because individual employees will be unlikely to pay compensation for the losses. Plaintiffs may allege employers were negligent in selecting employees or having safeguards in place, which is why liability insurance and other commercial coverage is also important.

Employee Theft Coverage in New York

Even if so far you have been fortunate to work with honest employees, dishonesty can threaten the very fabric of your company. To get employee theft coverage and other insurance products to give you peace of mind, contact us at Kokkoris Insurance Services to discuss the types of insurance top companies in New York choose to protect their organizations.

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