This Is Why Community Associations Need Employee Theft Insurance
Employee theft is an inevitable part of business operations, therefore, necessary to undertake an insurance policy to cover it. According to statistics, about $60 billion is lost yearly to employee dishonesty or employee theft. This is a troubling finding, thus, requiring necessary precautions.
Many companies are taking preventive measures such as installing security gadgets and so on. However, that alone isn’t enough because these employees are equally smart, and most times, the act is perpetrated by the people who have spent a long period of time in the association. These people usually know where security cameras or CCTV is located, as well as how to beat them. So, once acts like this take place, it is absolutely necessary to cover for the loss. And as you know, little acts like this can run an organization down, which is why it is very important to undertake a fidelity insurance policy, employee dishonesty coverage or employee theft insurance for associations.
Why you need Fidelity Insurance
Fidelity insurance covers theft from all the employees at all levels, including directors and community association managers. Some of the crimes covered by employee theft insurance include the following: money theft, computer fraud, forgery, alteration, securities’ theft, robbery, burglary theft, funds transfer fraud, false pretense, and social engineering, etc.
How much can do the insurance policy cover?
Fidelity/crime insurance usually covers a minimum amount of $10,000. And in most cases, the highest amount is $10M. However, a higher amount can be undertaken upon a written request. This provision is available for rich neighborhoods or highbrow communities. All the same, in order to have an idea of the quotes, it usually ranges between $10,000 and $10,000,000.
How the money for the insurance policy is raised
Members of the community are obligated to pay dues. These dues are usually between $100 and $10,000 per year, and it is calculated based on the type of neighborhood and its amenities. This implies that the high net-worth individuals living in rich neighborhoods pay higher dues in comparison with the middle-income earners.
It is equally worthy of note that the fidelity insurance covers theft-related crimes and not misappropriation of a company or the association’s funds. The underlining factor, here, is the intention of the employee. Employee theft is, therefore, basically a premeditated plan or action of the employee. Nonetheless, it occurs in every community association. In fact, it happens in any business organization or establishment.
Finally, brokers and community associations can relax and/or rest easy because they have the confidence that their assets are protected against crime/theft. In addition, it is advisable for business organizations to undertake this policy because employee theft is inevitable, and as such, the company will be compensated when it eventually happens.