Organizations lose an average of 5% of their annual revenues to employee fraud. The Association of Certified Fraud Examiners (ACFE) published a recent report in which they found that the average fraud loss to medium and small businesses was over $55,000 per loss. The US Chamber of Commerce states that 10% of business bankruptcies are a result of employee theft.
Why Consider Crime Insurance?
We think every business needs crime coverage. The costs are very competitive and can be included within your business insurance program. A business owner purchases such a bond to protect himself, or his business, against fraudulent activities by an employee. Many business owners do not consider it a necessity, but with employee theft, cyber-crimes, and other criminal activity on the rise, the chance of having a loss has increased dramatically.
- Sixty percent of lost inventory is a result of employee theft.
- The FBI considers employee theft one of the fastest growing crimes in America
What is Crime Insurance?
Crime coverage guarantees that the insurance company will pay the insured business for money or other property lost because of dishonest acts of its employees, either named or by positions.
While many business owners have implemented solid internal controls, there’s always the possibility that those controls will be breached by employees or outside third parties. Commercial crime insurance provides the failsafe your business needs against these risks.
We hope you have found this blog educational. At the Armstrong Timeshare Association we strive to keep you informed. To receive more information about our association or to request a topic of interest for us to blog, email: firstname.lastname@example.org
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For information on any insurance need, contact The Armstrong Company Insurance Consultants.
Armstrong Timeshare Association (License #0I72697)