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Business Insurance: Protect Yourself from Embezzlement and Employee Theft

Does your business insurance provide protection from employee theft of money, securities or property? Many business owners are not prepared if such a situation does occur. While some do not think this will happen to them or may rely on employee background checks to prevent it, others are under the misconception that their general insurance policy will automatically cover it as a type of property loss.

Every business, irrespective of size or nature or operations, is vulnerable to the threat of dishonest employees. Hiscox’s 2016 Embezzlement Study reveals that white collar crime is a real threat and is usually committed by key employees or those you would least suspect.

Here are 5 key findings from the above study that are likely to change the way you assess your business risk:

  • 36% of cases involved projected losses in excess of $500,000 with 20% of losses involving $1million or more.
  • More than 40% of thefts were committed by an employee in the finance/accounting function.
  • 4 of every 5 victim organizations had fewer than 100 employees; just under half had fewer than 25 employees.
  • The median age of the perpetrator was 49 years.
  • Women commit more embezzlement (56.3%), but men are close behind (increasing 5% over prior year).

Protecting Yourself with Business Insurance

Reasons for theft or embezzlement range from financial difficulties to opportunities (access to funds), skills, and knowledge required to commit fraud. Business owners may employ many different measures including implementing sophisticated technology to prevent Cyber deception, training staff on what to look for, implementing multiple levels of signoff and authorization, and closely monitoring funds to prevent employee theft. While all these processes are important and might help reduce risk, embezzlement and employee thefts still occur and the losses are almost never recovered.

One of the easiest and smartest ways to protect your company is with business insurance against employee theft. Coverage against embezzlement and theft should be part of your business liability insurance package from the moment you hire your first employee. Protection ranges from theft of assets and money to property damage and data loss.

Close the Gaps in Your Business Insurance Policy Today

Many business owners are not aware that general liability insurance is not a blanket protection against all types of business risk. At The Nowell Agency, we can help close the gaps in your business insurance policy. Our strong market position and access to a wide range of commercial insurance products enables us to offer you tailored coverage that will meet your specific business needs. You can count on us to identify your risks and help minimize them in a cost-effective manner. Business owners across the United States rely on us to help them find the best coverage and value for their insurance dollars. Meet with one of our friendly, knowledgeable brokers today to discuss your business insurance options.

Request a quote for business insurance or schedule a risk assessment now by contacting The Nowell Agency. Give us a call at a location near you.


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    My very first insurance experience was when I bought my first house and I called the Nowell agency for a quote. I had no idea what I needed or how much and they were so very kind and knowledgeable and explained everything to me in detail which I so much appreciated. That has been 4 years ago and im still a customer never plan to leave.

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