A 2018 Hiscox Embezzlement Study found some disheartening statistics: when hit with employee crime, the average loss totaled $357,650. On top of that, a whopping 85 percent of managers or higher ups were involved in crimes against the company they work for.
That kind of information is startling. Not only does a business owner have to worry about the many kinds of employee theft, but they have to worry about one of their supervisors committing the dirty deed. Losing that amount of money could effectively close company doors.
Employee theft is a nationwide problem costing United States businesses $50 billion annually, Statistic Brain found. Think about where that money could go if thefts could be prevented. For a staffing agency, it’s imperative to have a staffing agency insurance program that includes Crime Insurance coverage. No one can guarantee that a crime won’t happen to them, and if you’re a smaller business, there’s a lot more to lose. This is the importance of commercial crime insurance for a staffing agency.
What a Business Can Lose Because of Theft
The amount of both tangible and intangible valuable assets that a business can lose is substantial in a theft, according to the International Risk Management Institute (IRMI). This includes personal property like office supplies, furniture, fixtures, all inventory (counted or not), cash and other securities. If you’re concerning about what your staffing agency insurance is going to cover, getting in contact with an insurance agent will help.
What Crime Insurance Will Cover
Anyone could purchase a commercial property insurance policy, but it will only cover so much, and its coverage will primarily be limited to property damage. Employee theft and crime can occur in a variety of ways, and the losses will not all be property-related That’s when crime insurance comes into play. Here’s the type of covered loses your staffing agency can receive through our crime insurance program:
- Theft of agency property as well as theft of client property
- Embezzlement
- Ghost payroll
- Defense
- Legal Liability
- Theft of Trade Secrets
- Expenses from a security breach
- Expenses for unauthorized use of the corporate officers’ or directors’ personal identity information
- Kidnap
- Bodily injury
- Property damage
Crime is disruptive. While you can’t always predict what’s going to happen, you can always make sure your agency is covered in the event of a worst case scenario.
Why Crime Insurance is Important
Crime insurance comes in handy because unlike other policies such as burglary insurance, there aren’t as many restrictions. For example, burglary insurance only covers if you’re actually broken into. If an employee allows someone access, or the criminal gains access lawfully, burglary and commercial general liability won’t be helpful.
If you lose something that was non-material that can’t be replaced, such as important business files, this can only be covered under crime insurance. But if you’re the one committing the act, don’t expect to get coverage. There’s one important thing to note: although crime insurance covers just about everything that encompasses a criminal act, damage caused by war or the authorities is not covered.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (800) 245-9653 to speak with one of our representatives.