3 Things Risk Managers and Brokers Need to Review Before Securing Their Crime & Fidelity Policy
When an employee steals from their company, what should the employer do?
What even the most proficient risk professionals might not know is that employee theft can affect businesses of any type and size. The U.S. Department of Commerce reports companies lose $50 billion each year to employee theft, and such activity causes one in three bankruptcies. And that’s not to mention the new ways employees are accessing funds and other items.
“Traditionally, the biggest Crime & Fidelity exposure has been embezzlement by employees. This has been employee dishonesty. For example, employees setting up fraudulent accounts and having the company pay them to accounts that were not valid, or overpay,” said James Kardaras, Senior Director of Crime & Fidelity at Nationwide. “But now, electronic crime [criminal activity involving the use of computers or electronic means, to illegally transfer funds or steal, change or erase electronically stored data] is sharply on the rise.”
Given these expanding criminal trends, risk professionals should be securing the protection of a comprehensive Crime &Fidelity policy. But what exactly should they be looking for in their coverage and in their underwriter? Before investing in a Crime & Fidelity policy, it is essential that insureds consider the following.
To learn more about Nationwide, please visit their website.