Employee fraud and theft is a topic every business should be aware of because it can impact your daily operations, your finances, and your insurance in many ways. The insurance experts at American Tri-Star San Diego have put together a list of some of the types of fraud and theft to watch for on the job.
This involves the theft of money from your business by an employee who is entrusted with said funds. This can be done in several ways, such as pocketing money, creating purchase orders for personal use, or increasing the charge on an invoice. Embezzlement not only takes money and profits away from your business, but it can also taint its reputation, especially if invoices are overcharged.
Theft and Misuse of Supplies
When employees take business supplies, such as pens or paper, or operate the copier for their personal use, this is a type of fraud. These employees are taking items that are necessary for your business to function properly and causing you to spend more money to replenish these items.
Workers’ Compensation Fraud
Workers’ compensation fraud is committed when an employee is injured and claims it is a work injury. This type of fraud can be costly, not only because the compensation has to be paid out and your insurance rates will increase, but also because the employee is likely no longer able to perform his or her job.
Misuse of Company Time and Resources
Though this may seem somewhat harmless on the surface, time equals money for most businesses. When an employee plays games on the computer, texts instead of performing work duties, or uses the company phone for personal conversations, this costs your business because the employee is getting paid for doing nothing.
How Fraud and Theft Can Affect Your Insurance
San Diego commercial insurance is used to protect businesses from theft and damage and cover on-the-job injuries through workers’ compensation. However, when an employee commits fraud, it might not be covered under the insurance policy your business has. Depending on what type of claim is filed, your current insurance premium might go up.
There are many ways to keep your business protected from fraud and theft, but ensuring you have the right insurance in place should be one of your first steps toward making this happen. Get in touch with American Tri-Star Insurance for your commercial insurance needs. We also offer affordable health, auto, homeowners, and bond insurance in San Diego. Call us today at 619-272-2100 to speak with one of our knowledgeable agents and to receive a free quote.