How much effort do you put into protecting your business from theft? Most companies have comprehensive security measures to minimize this risk. However, these efforts often point to theft by an outsider – including theft by customers, or by just those walking by the company. However, theft can occur within companies as well.
Curbing these incidents (known as insider crimes) plays a big role in minimizing potential loss for the company. While your commercial property insurance coverage can provide assistance if a crime does occur, it’s best to try and prevent this type of loss at the outset.
What Are the Risks?
Commercial property insurance provides a business owner protection from loss or damage to key assets. Employee theft is one of the types of loss that are covered. However, every business owner needs to take steps to minimize the risk of insider crimes. Here are some tips for doing this.
Increase Perceived Probability
It’s important to realize that insider crimes do happen. There is no way to know your employees will always be honest. An employee facing a financial hardship at home may steal to meet obligations, for instance.
Your employees are ultimately responsible for their actions, and there’s no way to prevent them from acting inappropriately. Still, you can create a strong deterrent system that makes insider crime less palatable. Consider these tips:
- Create an accounting system that ensures stringent finance monitoring.
- Conduct frequent audits of accounts. Do this without a predictable pattern.
- Encourage co-workers to report theft if they see it. Be sure they know they can report such situations anonymously.
Work to Minimize the Risk by Hiring Well
Business owners can also improve their hiring process to cut down on the likelihood of insider crime. While improved hiring practices won’t eliminate the chance of crime befalling your establishment, they can help you reduce risks in multiple ways.
- Put in ethical practices in place. Communicate those with potential new hires. Gauge their ability to meet those ethics goals.
- Increase background checks and screenings, within state laws. This can help ensure a comprehensive understanding of who you are hiring.
- Consider short-term performance reviews for new hires. Be sure all new hires know there is a probationary period at the onset of employees. Cut ties with employees suspected of theft during that initial period.
These steps help increase overall insight. However, business insurance is still essential. As there is no way to avoid all risks, it is valuable to have coverage that is comprehensive. Develop a commercial property risk survey to understand your risks. Then, create a plan to minimize these risks going forward.
Bruening Insurance has answers to your questions about commercial property insurance. Contact us today to learn more.