Employee Dishonesty Insurance
Restaurants and bars experience a very high incidence of employee dishonesty on a regular basis. It may sometimes be that an employee is unintentionally over serving a customer.Other times, however, an employee may be willfully stealing from a company. Either of these instances can cost the company a great deal of money. In order to protect food service companies from theft, it is a good idea for them to be covered by employee dishonesty insurance.
Why Your Business May Need Employee Dishonesty Insurance
It doesn’t matter whether an employee steals a few dollars or items only once, or a little at a time over a number of years, it still costs you money in the long-run. When your company has these types of thefts go unnoticed for a significant period of time, it can damage your business, potentially to the point of losing said business. You may have a company full of honest employees, but if you end up presenting some of them with an unadulterated opportunity to take something, and the circumstances are right, some may end up doing it anyway.
What Employee Dishonesty Insurance Covers
When you realize your company has the potential for becoming a victim, you see just how valuable employee dishonesty insurance can be. The policies for employee dishonesty insurance are typically written up in a way that covers all employees under a blanket policy. This means, no matter who does the stealing, you are still covered. You will be expected to make sure you are putting safeguards in place to keep theft at a minimum, but should you notice that someone is stealing from you, there is help.
Some of the most common safeguards a food service company can put in place to prevent theft include:
- Make sure all upper management employees are using an auditing system,on a regular basis, to check for any numbers that are “off.”
- Have each of the business’ accounts in the name of someone who is not responsible for deposits so that the depositor cannot withdraw money.
- Use an outside accounting firm to check all money going in and coming out of the business.
- Make sure the policy your employees sign upon employment specifies what the consequences will be should theft occur, and follow through with it.
For more information about getting an employee dishonesty insurance policy for your restaurant or other food business, give us a call today. At Restaurant Programs of America, LLC, we can help you determine how to best protect your business from theft, and provide the proper coverage to ensure your business will be able to recover its losses should you experience theft despite your safeguards.