There’s a business owner in your community that their bookkeeper just defrauded. The business lost everything, and now it’s going to have to close its doors. You can’t picture yourself allowing this to happen to you, right?
If you are determined to protect your business from theft or fraud by employees or contractors, then all you need is good screening practices and proper insurance coverage. Keep reading to learn some of the benefits of insurance products intended to cover business owners like yourself.
What Is Considered a Fraudulent Act by An Employee or Contractor?
It’s a good idea to first establish an understanding of the definition of fraudulent acts.
Theft and/or misuse of business resources is an unfortunately common problem. Common examples of employee theft (also referred to as commercial crime) include physically stealing cash funds from a register.
They use a company credit card to purchase goods not intended for business use and provide false information about the financials of a given business, even if this action was unintentional.
How To Protect Your Business
There are a variety of insurance products available to protect your business from fraudulent activity.
First, you must have the right kind of business insurance for your needs! Many employees or contractors who defraud companies do this because they’re trying to get away with something on behalf of themselves or someone else. Still, if there were an insurance policy to cover the business, this wouldn’t be possible.
Second, there are a few things business owners should do on their end to help protect their business from this type of fraud.
You can make checks payable only by the owner or another designated person or set up monthly account reviews with someone other than yourself and the business’s bookkeeper. You can also set up a separate bank account for business transactions.
With business insurance, business owners can purchase business property and business income coverage to protect against theft of the bookkeeper variety.
If you want more elaborated info about this kind of situation, consider talking with an experienced independent insurance agent directly!
Benefits Of Business Insurance
Here are some reasons why it is important to get proper insurance for your business:
- Protects against lawsuits.
- Protects against covered losses
- Offers liability coverage for your business.
- Covers the employees and by extension the business itself, for a potential workplace injury.
- Builds credibility and trust with new clients.
- Provides coverage in case of theft or damage to property.
- Protects the company from claims by clients and/or visitors to your location.
Connecticut’s Trusted Insurance Agency
Paradiso Insurance is known in the industry as an agency that puts its clients’ needs first. We will provide the right solution for the unique insurance needs of your business.
