No matter what kind of business you run, employee theft will always be a risk. According to the article “They’re Robbing You Blind” from September’s issue of Claims Magazine, a typical business can expect five percent of its revenue to be lost through the fraud and embezzlement of their own employees. That’s a staggering amount that can affect the bottom line of any organization, and could easily cause a small business to fold.
Many employers are shocked to find that their employees might be causing such a loss within their company, and are unaware of the many ways it can manifest. Sophisticated schemes of merchandise theft and illicit reselling exist alongside small, long-term thefts from payroll or check fraud schemes. In some cases, employee theft can go on for years and never be caught because of the blind trust placed in a single individual within a company. Businesses have lost hundreds of thousands, or even millions of dollars this way, often only realizing the damages long after the responsible party has disappeared.
The impact of employee theft is huge – globally, it’s calculated at approximately 3.7 trillion per year. An average loss is almost $850,000. You might think those numbers would be skewed by large-scale fraud in the financial industry, but even the median damage of employee theft is $280,000. Few businesses can easily afford such a loss.
There are several ways to guard against employee theft, and options to insure yourself against damages from embezzlement and fraud. Our CEO R. Glenn Matsen would be happy to discuss your business and your options directly on his personal extension at 916-306-5902. Kompani Risk & Insurance Solutions, Inc. offers insurance and consultation in 27 states, and the core of our business is making sure that you feel safe with yours.