It’s the time of year when, hopefully, business picks up substantially in preparation for the holidays. Many businesses find that they make the bulk of their profit in the last weeks of the year (despite news reports just in that Black Friday sales were down by $1 billion this year). Nevertheless, it is also a time when an influx of new, seasonal employees (along with existing ones), many of whom may have been hired in a hurry and not vetted in the most thorough manner, may result in triggering a crime insurance claim for some unsuspecting businesses should cash, inventory, or credit card information go missing.
Policy offers a lot of protection, inside and out
This coverage can step in and protect a business in the event of such crimes as employee dishonesty; forgery or alteration (say an employee adds an extra zero to a customer’s check, or forges a customer’s signature or authorization on a fake transaction); steals securities or money from the business’ safe or cash register; commits burglary or robbery of the business’ contents; or attempts to take his larceny electronic and commits computer fraud. What’s important to realize is that one’s basic business property coverage may not offer protection for these types of occurrences, but a crime policy will, whether the theft occurs inside the business or off premises with an employee or owner.
Help when she needed it
Andrea, the owner of a small handmade artisanal soap company, found out just recently how important to her bottom line such a policy can be. She had gathered thousands of dollars’ worth of merchandise to sell at the community farmer’s market being held on a sunny Sunday, and took two employees from the store to help her sell. She did brisk business and sold nearly every item in her inventory, so she was unpleasantly surprised to find that the take for the day was more than $2,000 short of what it should be. An investigation revealed that while Andrea was on a break, the two employees, in cahoots with a friend, deliberately undersold dozens of the expensive goods to another person. On paper the sale looked legitimate, but further investigation revealed the fraudulent activity. The employees were fired, but Andrea would have been out of the money if she hadn’t had a policy to offer protection.
Contact a professional insurance agent to learn more about what a crime insurance policy can do for your business.