A general liability insurance policy doesn’t cover every type of liability that you may encounter in your business. These policies may cover things that include:
- Personal injury
- Copyright Infringement
- Defense costs
However, they rarely ever covered issues with employee fraud, including theft, burglary, counterfeiting and embezzling. For these crimes, you need to have crime coverage insurance. This type of insurance will cover you when employees are dishonest and stealing or cheating your company.
Things that may be covered under crime coverage insurance include the following:
- An employee stealing from petty cash
- An employee writing fraudulent checks
- An employee stealing inventory
- An employee taking and selling customer information
A general liability policy may, however, cover your defense costs if you go to court to fight an employee theft issue. In many cases, though, if you lose the case, you may have to pay back the expenses that were covered by your insurance.
This is why it is almost always your best bet to have crime coverage insurance if you employ anyone else in your business. With employees always comes the chance that they will be dishonest or try to steal from you in some way. This type of loss may end up being minor if you catch it early, but many times it goes on for some time and the costs can be devastating to your business.