Fidelity Insurance vs Fiduciary Insurance

I was asked recently about fidelity insurance.  As I mentioned in a prior post, fidelity insurance is employee theft coverage; AKA employee dishonesty insurance. Fiduciary coverage is very different. Fiduciary coverage is liability protection against allegations that you have violated the federal law governing employee benefit plans - known … [Read more...]

Dishonest Employees and Crime Insurance

I have posted about this in the past.Most crime policies exclude acts by an employee who is known to have committed a past dishonest act. That exclusion removes coverage when a manager knows that an employee has stolen a pencil, and then six years later is found to have stolen $200,000.Goofy!Here is the wording from a Travelers' crime policy I am … [Read more...]

Crime Insurance – No Coverage For Owners

Here is an exclusion I see quite often in employee dishonesty and crime policies: "This Crime Policy will not apply to loss resulting directly or indirectly from any fraudulent, dishonest, or criminal act committed by the Insured, the Insured's natural person partners, any LLC Member or Officer-Shareholder, whether acting alone or in collusion with … [Read more...]

Data Breach

Best Review reported this month that the average cost of a data breach is now $204 per record exposed.This includes the cost of notifying those whose records have been released, reissuing credit cards, credit monitoring services, and counseling services. Standard insurance will not pay for these expenses.  Insurers are coming out with Cyber … [Read more...]

Mysterious Disappearance

Your watch is missing.Was it stolen, or did you misplace it?The distinction could be important when it comes to your insurance coverage. Check your property insurance policies for limitations to coverage for burglary and robbery. Assuming an item was stolen is not the same as knowing it was stolen.Another great reason to understand the insurance … [Read more...]

Insurance Success Tip #6 – Buy Employee Dishonesty Insurance

Half of all theft in the US is perpetrated by employees. Don't tell me how honest your employees are. Everyone who has been hurt by embezzlement said the same thing the week before they found that they had been taken.$250,000 of coverage is a minimum for any business. More if your exposures warrant. The coverage is usually cheap too. … [Read more...]

Employee Dishonesty

It's been a while since I ranted on this... How much coverage do you have for employee dishonesty?   Employee theft accounts for a huge percentage of business theft losses.  Yet, business owners have a mental block about buying enough coverage.   My readers seem to like rules.  Here goes. Rule 1: $100,000 of coverage is a minimum for any … [Read more...]

Employee Theft Blog

An employee theft insurance claim is a huge hit to most business people. Not only is there the financial consequences, there is the emotional toll of the violation of trust. Check out the links below for stories of the crimes and hints to prevent a loss. … [Read more...]

Credit Card Security

I will admit that I personally am not terribly worried about identity theft. I go about my life being prudent but not neurotic.I am concerned about my client's exposure to loss by credit card data-breach. Every day we hear of another merchant security problem. Every business must work with their credit card processor to limit their exposure to a … [Read more...]

The Disgruntled Employee

What can a mad employee do to you? How about erasing all your data? That's just what happened to the company in the article here. (I was pointed to this article by Wes Trochlil's Blog.) Who in your shop has access to your current and past data? How can you protect your operation from a disgruntled employee? What checks and balances can be … [Read more...]