5 Common Types Of Incidents That May Trigger Employee Dishonesty Coverage

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Every business owner knows the importance of Employee Dishonesty Coverage. But do you know how far it will cover your business? Learn about the five most common types of incidents that your Employee Dishonesty Coverage may help you with!

It’s not always easy to pick what your business needs, but you still need to experience managing the business before understanding it better.

However, there are some types of insurance that every business needs. Employee Dishonesty Coverage, General Liability Coverage, Workers Liability Coverage (Workers Comp Insurance), Business Owners Policy, Employment Practices Coverage are some of them. Every business has to deal with a variety of employees that work for it over time. 

While many of them might be a positive experience for the organization, some don’t leave a good impression before leaving. While you may not be able to control their actions and work ethics, you can still protect your business from their illicit activities. 

With Employment Dishonesty Coverage, every business owner gets coverage for the actions of their employees. You may ask what kind of actions constitute illicit activities under this type of insurance. That’s what we’re here to discuss. 

Inventory & Food Theft

If you’ve ever worked at a retail outlet or a restaurant, you must be aware that employees stealing from their place of work is quite a common act. Something most employees indulge in at some point in their lives.

As a business owner, it’s your duty to ensure that you don’t suffer losses due to these actions! Apart from getting Employee Theft Coverage, you can start managing business more efficiently. Investing in an inventory management tool should be at the top of your list. 

You can also hire a trusted employee to keep an eye on the actions of their colleague. You can also install inspection cameras at various places within your establishments to monitor the employees’ actions.

Checkout Theft

Checkout counter internal theft is one of the most common crimes in the USA. Stealing cash from the register and overcharging the customer are often committed in the more secluded regions of business. 

A business owner can best avoid such incidents by installing a POS (Point Of Sale) system. It helps them keep an account of the transactions and also provides the customer with the right information regarding the products they buy.

Accounting Fraud

There are many incidents of employees manipulating transaction records to save an extra buck every now and then. While they may not understand the large implications of their actions, the business owner will. 

Those small tractions can turn into large losses and tax frauds over the years. Having a clear picture of the payments and receipts is the only way to balance your sheets and avoid suffering any losses. 

You can do so by maintaining proper records and having one of your trusted employees check on them daily. A smaller mistake can be caught and resolved easily as compared to a pile of problems.

Intellectual Property Theft

This is unique to businesses and restaurants where a new product is developed. Such businesses have many intellectual properties like recipes, formulas, lists, and processes that are unique to their organization. 

One prime example is KFC’s secret recipe of 11 herbs & spices that make their product unique. Stealing or distribution of such properties is considered theft. If any employee indulges in such activities, then your Employee Dishonesty Coverage will protect the business.

You can also safeguard such critical information by limiting the number of people you share it with. We also recommend that such businesses get Spoilage Insurance coverage, Food Liability Insurance, and other insurance for food businesses.

Time Theft

The biggest drop in the productivity of any organization can result from time theft. Employees who waste their working hours taking extra long coffee or lunch breaks, hanging around in the washroom too long, arriving late, leaving before the end of office hours, and taking phone breaks add to the negative culture in the organization. 

If your business suffers losses due to such a laid-back and unprofessional attitude, you will be covered by Employee Dishonesty Insurance protection. You can also avoid such incidents by hiring trusted floor managers and monitoring employee behavior.

Our Honest Opinion

Many more unique incidents can trigger Employee Dishonesty Coverage. But these were some of the most common ones. You can find your own solution to them or apply some of our suggestions. But whatever you decide, don’t forget to get Employee Dishonesty Coverage for your business. Because you never know when you may need it.

If you need more details about what your Employee Dishonesty Insurance covers, you can get in touch with us at or 855-539-2333. Our insurance experts are always here to guide you.

Published: December 15, 2023

Last updated: February 15, 2024

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