Automotive Specialty Insurance

Employee Dishonesty


Two common types of employee crimes exist: embezzlement and sabotage. The complexity and anonymity of computer systems may help criminal employees camouflage their efforts. The victims of the most costly scams notable over today’s business landscape are financial institutions, but auto part companies are at risk in more ways then expected.  


Most employees who are guilty of embezzlement do not have criminal histories. Embezzlers tend to have a gripe against their employer, have financial problems, or simply an inability to resist the temptation of a loophole they have found. Screening and background checks on perspective employees can help in prevention; however, many laws make some types of screening difficult or even illegal.  Fired or disgruntled employees sometimes sabotage their company's computer system as a form of "pay back". This sabotage may take the form of a logic bomb, a computer virus, or creating general havoc.  


To avoid financial loss prevention measures should be designed to combat and prevent employee crime and supported by security measures such as cameras, fingerprint records of employees, and dual signature accounting. The intent is to avoid employee crimes all together if a loss was unavoidable, crime insurance would be applicable.

Crime insurance is insurance to cover losses due to victimization by criminals. It's also called "fidelity insurance." Many businesses purchase crime insurance that allows them to file claims for employee theft or other offenses with the potential to cause financial ruin.  


Insurance companies sell separate crime insurance because regular property insurance policies usually don't cover losses caused by dishonest employees.  


The products afforded by the SEIA program are custom tailored to each insured upon request and is designed to afford coverage when an organization suffers a loss from;  


    • embezzlement  
    • theft  
    • forgery  
    • computer fraud  
    • counterfeiting  
    • breaking into a safe  
    • general crime and dishonesty  


A comprehensive crime program can be added to a commercial package policy or set up as a stand alone program providing some or all of the following coverage’s;  


    • Employee Theft 
    • Forgery or Alteration 
    • Monies & Securities – Inside & Outside premises 
    • Inside Robbery & Safe Burglary 
    • Computer Fraud 
    • Extortion 
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