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Everything to Know About Employee Dishonesty Insurance Policies
In a perfect world, those who are employed in the food industry are honest, hardworking and always make employee of the year – but since that’s not realistic, it’s important for the owners of restaurants, cafés, catering companies and bars to purchase employee dishonesty insurance for their establishment. Without it, their business could severely suffer, and given the proper circumstances, even shut down for good. Employee dishonesty insurance prevents this from happening by taking all of the fraudulent acts an employee could make, and setting guidelines in place to effectively deal with it.
Potential Employee Risks and Threats
Even when a business owner puts those who are closest to him or her in charge of their food establishment, no one can be fully trusted. This is especially true when high levels of power are involved, demonstrated by all of the managers and executive leaders of restaurants that have committed fraudulent acts against the company they work for. When it comes to these upper-level management positions, employee dishonesty usually comes in the form of stealing money directly from the restaurant, catering business or other type of food establishment – because they’re usually trusted with handling the money directly. Employees in the food industry are also notorious for over serving alcohol to customer, pouring them more than the allotted amount and, in turn, decreasing the profit that the bar should be making. Waiters, waitresses and bartenders may also steal food, liquor, glassware and equipment from the business. All of these examples of employee dishonesty combined make for a strong case when it comes to investing in employee dishonesty insurance.
Preventative Measures to Protect a Business
Regardless of how common it is for employee dishonesty to take place in the food industry, those who own and operate their own food service company and business can take proactive steps to protect themselves from being taken advantage of – and most importantly, keep their business from shutting down due to fraudulent activity and theft. Owners can make sure that every single upper management employee uses an auditing system to keep track of numbers; keep each one of the restaurant’s business accounts in the name of a party not responsible for deposits, so that said depositor is not able to withdraw money; hire a separate accounting firm to watch over the business’ cash flow; and create an employee policy that states a specific set of consequences that will occur if they are caught stealing from the company, or promoting it in any way.
What Employee Dishonesty Insurance Covers
Most restaurant insurance agencies provide their clients with employee dishonesty insurance coverage that covers forgery made by employees, and alterations and fund transfers made electronically that are unauthorized. Any type of fraud – including credit card, money order and counterfeit – are also covered under most policies. Any employee dishonesty coverage plan that also entails a crime insurance policy means that a business is protected against a variety of damages caused by criminal acts made by employees. Stolen money, any type of business property or security is covered under a criminal insurance policy, and the losses made will be recovered or reimbursed in some way. The extensive policy also protects trustees, partners, directors and other types of employees – not just the owner of the food industry establishment.
Invest in Employee Dishonesty Insurance Today
While employees aren’t always honest or ethical, those who own their own establishment in the food industry can actively protect themselves against such behavior by purchasing employee dishonesty insurance for their business. At Restaurant Programs of America, a leading full-service insurance agency that specifically caters to the restaurant industry nation-wide, we provide outstanding and affordable employee dishonesty insurance. Our reputation is based on our experience, focus and integrity – three values that hold true to every client we take on and every service that we provide, big and small. You are encouraged to request a quote for an insurance policy by filling out a form on our site. Or, you can contact the Restaurant Programs of America’s office by calling 866-577-7007. Our team looks forward to helping your business with our employee dishonesty insurance policy.