Fidelity and Crime Insurance
FIDELITY AND CRIME INSURANCE
Fidelity losses can and do significantly impact company assets. In fact, the average business losses 6% of its total annual revenues to employee fraud. Applied to the U.S. Gross Domestic Products, this translates to losses of approximately $600 billion, or about $4,500 per employee. The prevalence of computers and electronic fund transfers makes companies even more vulnerable to fraud-related losses.
No company is immune; losses occur in large and small businesses alike, regardless of industry and past loss experience. Of companies surveyed, nearly 40% had no insurance to cover their losses and over 60% were unable to fully recover their losses through the insurance policy they had in place. In some instances, losses can be so significant that they can put a company out of business altogether. In fact, many business failures are tied to an uninsured or underinsured crime or fraud.
Even the most ethical and careful companies are vulnerable to employee crime. While internal controls can limit the amount of a loss or assist in a timelier discovery of a loss, controls are routinely circumvented. In fact, most frauds are not discovered through the audit process, but rather through tips from employees or vendors.
All businesses rely on trustworthy employees and dependable vendors and subcontractors. While these resources can enhance the capabilities of a business, they also represent a significant risk. Even once trustworthy employees may be driven to steal in certain personal circumstances. Companies in a period of growth or acquisition, and those experiencing expense control and downsizing efforts, are particularly vulnerable.
Please call us at (800) 562-6362 or fill out this form for further assistance