Small Business Owner: Do I Need Crime Insurance?

When you hire employees to work at your small business, you want to trust that they will help your business succeed and grow even more. After you carefully interview employees – and may even run background checks – you likely selected employees you believe you can trust. However, even the most seemingly trustworthy employees may engage in actions that harm your business and that can even result in criminal charges.

While you never want to assume an employee will commit a crime that hurts your business and/or your clients, it is important to be prepared for this scenario. If you are not prepared, your business could face a significant amount of loss or liability that can even lead to liquidation and bankruptcy. In order to protect against any possible criminal actions of employees, you should consider obtaining a commercial crime insurance policy.

Commercial crime insurance can cover the following scenarios and more:

  • An employee engages in dishonest behavior that results in the loss of money or securities, damages to business property, or damage to a client’s’ property.
  • An employee forges or alters a financial instrument in order to misappropriate funds.
  • An employee uses their access to company computers to fraudulently transfer funds or securities from the business to their own possession.
  • Any other form of embezzlement or theft from the company.
  • An employee visits a client’s office or home and steals property.

Most small business owners never believe that employee theft or similar crimes will happen to them. You would be surprised at how many businesses get into serious trouble because an employee engages in fraudulent actions at the expense of the business, however. You should especially be prepared if your employees regularly have access to business funds or accounts. Having commercial crime insurance does not mean that you inherently do not trust your employees. It simply means that you want to be prepared to protect your business in every possible scenario.

Call 609-561-8404 today for a free consultation.

The D’Agostino Insurance Agency understands the wide range of insurance needs of small businesses in New Jersey. We will evaluate your type and size of your operation and can recommend the best and most affordable insurance packages for you while ensuring you have the protection you need. While you never expect to need insurance, the success of your small business may be in jeopardy if you are not fully covered. Please call 609-561-8404 to discuss your options and insurance quotes today!