Employee dishonesty coverage is meant to cover your business against criminal acts of any kind by your employees. It could be theft with a view to financial gain, or willful damage to your property out of any motive.

  • Theft: When employees steal money, equipment, property of any kind, or securities like passwords, bonds etc., you can suffer huge financial losses. Employee dishonesty coverage safeguards you from such loss.
  • Damage to Property: Willful damage to property by an employee out of rage, revenge, or any other motive can also cripple your business. Employee Dishonesty Coverage covers this kind of damage.

One of the main drawbacks of the Employee Dishonesty Coverage is that the burden of proof lies on the owner. Insurance companies pay for losses only if it has been conclusively proved that the loss was due to theft by employees. Employee dishonesty coverage does not cover.

  • Unexplained disappearance of Property
  • Loss of employees’ property.
  • Damage that has been covered by another insurance policy.

Employee dishonesty coverage is meant to cover your business against any crime by employees. Some of the basic facts about employee dishonesty coverage are discussed below.

  • Employee dishonesty coverage offers blanket coverage for your business against theft by employees. All employees are covered under this policy.
  • The insurance limit is calculated on the basis of occurrence. If more than one employee is involved in a single instance of theft, the payout will be for a single occurrence.
  • The Knowledge and discovery period of the crime covers the time elapsed between the theft and its discovery by a senior official.
  • The loss limit of liability is a one-time payment with no yearly aggregate.

Employee theft is a real threat to businesses. What’s more, most insurance policies do not cover this kind of damage to business or property. Therefore, it is a good idea to opt for Employee Dishonesty Coverage. If you have any queries regarding the insurance coverage you should opt for, you can approach a small business consultant or insurance agent to help you choose the right Employee Dishonesty Coverage for you. After all, you never know when a disgruntled employee may damage your property, or embezzle fund from your account. Better to be safe than feeling sorry.