Protect Your Business Against Staff Theft

Theft by staff has long been considered an occupational hazard by employers.  Items normally at risk are lower value stock such as stationery but they can include equipment and computer peripherals which have a higher value.  At worst an employer could face financial ruin as a consequence of systematic theft of business funds by an employee.

Overall, theft from business by employees can come in many forms - all with differing financial cost to the employer.

• Giving discounts or free goods/services to people who are not entitled to them
• Stealing stationery such as pens, paper and envelopes
• Stealing equipment from staplers to cameras to computer hardware
• Overpaying for supplies in exchange for cash or gifts from the supplier
• Siphoning money from the business bank account
• Diverting customers’ payments to the employee’s own bank account
• Producing false orders and taking the goods

While it's impossible to protect your business completely from theft by employees, you may wish to make sure that you have in place a system of checks, references and supervision.  Ensure that you have a good disciplinary policy to deal with theft: making staff aware of the consequences should make them think twice about committing a crime.

You may also wish to consider arranging Fidelity Guarantee (or Staff Dishonesty) insurance, which can cover loss of business money, securities and property as a consequence of an act of fraud or dishonesty committed by an employee.

To find out more about Fidelity Guarantee Insurance contact your chosen Cherrypicked Insurance Broker.

Last reviewed 26/10/2011

To talk to an expert in your area and get a quote, contact your local insurance broker.