Theft by employees
October 3, 2023
As a business owner, you are responsible for the management of your business, you can also be liable for any illegal practices or mismanagement that occurs within the company. A Management Liability Policy is a group of covers packaged together to protect Owners, Management & Employees & the Company from a number of exposures that relate to the management of a business. This type of policy protects the financial health of the business as well as the personal wealth & assets of its Directors and officers.
As an example, two employees were stealing money from their employer by accepting cash payments for work completed. Over the space of 12 months, it was determined that they stole approximately $120,000 in revenue.
If you have the right cover….
You can make a “fidelity claim” on your policy and be able to claim the amount stolen of $120,000 on their policy. Most policies also cover the costs involved in investigating and prosecuting the employees as well.