Protect Your Business from Employee Fraud and Invest in Business Insurance
September 13, 2016
Keep your company safe from employee fraud with the right business insurance.
Your employees are vital to the survival of your small business. You need the right people to help you keep your business operations going. You trust your employees to help build your business. However, every so often, your employees put your business in jeopardy. Every so often, small businesses are victims of employee fraud. Not only is such an act a threat to the survival of your company, but it’s a betrayal of trust. No matter how much you trust your employees, it’s important to protect your business from all fronts. Get the right business insurance to help keep your business safe and check out what you need to know about employee fraud.
Types of Employee Fraud:
There are lots of types of employee fraud. All can be detrimental to your business, but there are some that are more common than others. The top three types of employee fraud are stealing, corruption, and financial statement fraud.
How it Affects Your Small Business:
While all fraud is bad for business, employee fraud is especially hurtful to small businesses. In fact, small businesses are affected by fraud by a six percent higher median loss than larger companies. Additionally, most of the funds lost in such cases aren’t recovered. Your business is then left with a deficit that you need to recover.
How to Protect Your Business:
There are various measures that your small business can take to help protect itself from employee fraud. Before hiring new employees, conduct a background check. That way you can look for any red flags that could threaten your business. Additionally, it doesn’t hurt to take stock of your employees’ financial situations. If they exhibit any red flags, it could be an indication that something fishy is afoot.
Don’t leave your business vulnerable. Protect your small business from employee fraud. Invest in the right business insurance so that you can rest easy knowing that you’re protected. Located in Illinois, Thomas Ward Insurance serves all your personal and commercial insurance needs. Contact us for more information.