Webinar: Risk Management for Employee Theft

Description

WEBINAR DESCRIPTION
A fidelity bond provides a business insurance protection against a risk that a business owner may not want to consider – employee theft.  Unlike the burglar, the vandal or the computer hacker who “invades” the business’ premises to damage or steal property, an employee has a relationship with his or her employer.  Somehow, being wronged by a stranger can be easier to accept than being wronged by an employee.  An employer, in making the decision to hire the employee, has made a decision to entrust the employee to perform some function for his or her company.  When an employee steals from his or her employer, the employer is forced to question the hiring decision and the trust placed in the employee.  Although the employer could follow the path of “see no evil, hear no evil, speak no evil,” a strategy of avoidance is harmful in the long run. 

A strong system of internal controls can reduce the opportunity for theft significantly.  Internal controls are especially critical for a contractor whose employees are scattered at various job sites.  In this case, systemic controls are necessary because centralized oversight of employees physically located in more than one place is not possible. To protect the bottom line, it is imperative that a contractor implement the following internal controls:

As a second line of defense, in case the internal controls are overcome and a significant loss occurs, a contractor needs fidelity insurance.  Most insurance companies provide employee dishonesty coverage under a policy that provides multiple coverages including employee dishonesty and theft of money and securities by persons other than an employee.  Although there may be some differences among the fidelity policies available in the market, they are similar in terms of the structure and coverages offered.  The Crime Protection Policy, developed by The Surety & Fidelity Association of America, offers six different coverages.

THIS WEBINAR IS DESIGNED TO:
 

• Create an awareness of the exposure to employee theft.
• Identify techniques and internal controls to mitigate the employee theft exposure.
• Learn about the coverages offered by a fidelity insurance policy.