Employee Theft? No way…right?

Every employer – whether a corporation, a small business, or a non-profit – provides a level of trust to employees, a belief they have the company’s best interest at heart.  However, as we know, that is not always the case. Sometimes, the only interest an employee has in mind is their own.

In just the past 2 months, we have had four clients experience Employee Dishonesty claims.  These claims range from $25,000 to $300,000. Each situation is unique in details but similar in execution.  The entity trusted an employee to do what is right with the company’s best interests in mind and, in turn, the employee slowly siphoned money undetected for personal gain. 

While Employee Dishonesty coverage would help to protect and replace theft of funds, there are important policies and procedures to have in place to avoid it in the first place:

1. Ensure no one employee has sole access to financial accounts

2. Make sure your financial books are audited by a CPA annually (or more)

3. Be sure to review the audit with a management team or board of directors

4. Be sure to reconcile bank accounts with deposits or withdrawals

5. Require two signatures on checks

6. Require employees or officers take annual vacations of at least five consecutive days.

It can happen to you.  The question is, will you simply allow it to happen or take steps to avoid it?


Oh Deer!

Close your eyes and imagine you are sitting in your family room, gazing outside at deer in the backyard.  Suddenly, the deer turns towards the house and takes off running. It crashes through your bay window and is now inside your house frantically trying to escape.  Unfortunately, in its chaotic state, the deer tears up much of the interior of the house. 

Hard to believe?

Well, this really happened to a homeowner in Ohio.  And to the surprise, and dismay of the homeowner, the insurance carrier denied the claim, stating “deer was not a ‘covered peril’ on the policy.”

What is a ‘covered peril’ you ask?  A peril is a cause of the loss.  Whether it’s covered or not depends on the contract form the policy is written on. 

If it is a ‘named peril’ policy, the insurance company will only cover a loss specifically named in the policy (see deer claim above).  If it’s a special form policy, all risks are covered unless specifically excluded.  It turns out the homeowner in this situation with the deer was only covered by a named peril policy, thus leaving an expensive void in coverage.

This example highlights the importance of understanding the difference between a ‘named peril’ policy and a ‘named exclusions’ policy as coverage can be greatly impacted.  Review your homeowners insurance to make sure you have the broadest form available to you so you are not left like a deer in headlights.

Read the article here: https://www.wcpo.com/money/consumer/dont-waste-your-money/deer-trashes-home-insurance-wont-pay-for-ruined-items