Win the Fight Against Employee TheftNovember 2, 2010 – In The News
Employee theft or dishonesty may start with just borrowing money from a company but can result in major debt that may not be covered by a general liability or business owner’s policy. Purchasing additional employee dishonesty coverage -- which requires the employer’s cooperation with the insurer and law enforcement -- proves to be beneficial for companies when dealing with a case of employee dishonesty.
"Beyond the civil case, there’s a criminal component," said Carl Anthony Maio. "Once you report the theft, the person will be arrested and can face a felony charge. There’s a reluctance [by many employers] to have the person incarcerated and face the criminal justice system." Emotions usually get involved in employee dishonesty cases when accepting that a once-trusted employee committed a criminal act hurtful to the company. "Once you start down the path of voluntary restitution, you disturb the insurer’s liability obligation," warned Maio. "The insurer must pay all obligations it’s legally required to pay. With a five-year restitution plan, it’s more difficult for the insurer to assess liability and pay the claim."
View the entire article in the November 2 issue.