A Business Insurance Update
Companies prepare for and manage many forms of business risks from the traditional ones such as fire and flood to the emerging types including cyber, dishonest acts of employees, and even insider fraud. Industry experts have found that the cost of an average fraud loss averages about $50,000 (The Association of Certified Fraud Examiners). Your commercial insurance program should include coverage to protect against losses resulting from an employee’s dishonest or fraudulent acts such as; credit card forgery, computer fraud and theft, and disappearance and destruction of property.
Here are some tips to help protect against employee dishonesty and fraud:
1. Complete background checks on all new employees
2. Create internal policies and procedures that require checks and balances
3. Designate a third person to approve all purchases for or checks written over a certain dollar amount
4. Have an outside accounting firm review your records annually
5. Require all employees to take their scheduled vacations
6. Have separation of assigned duties between check writing, approval and deposits
Employee fraud is a greater risk than most businesses would think. Contact our office for a complimentary review of your business insurance program to make sure that you have the appropriate coverages for the unique risks of your business.
Armstrong Timeshare Association (ATA) has been created exclusively for timeshare resorts and HOAs and to assist timeshare resort risk managers and brokers. Our products include comprehensive insurance programs designed specifically for the Timeshare and HOAs industries and the distinct insurance profile for which, often times, basic insurance does not adequately cover. The ATA program includes a property restoration component for major losses assuring minimal downtime and loss mitigation.