I was talking to a client the other day, and he asked me what employee dishonesty was all about. He owns a small business with about 6 employees, and most of them have been with him for at least 5 years. He didn’t understand why he needed it since he trusts them.

What Is It?
Employee dishonesty is considered to be a criminal at committed by and employee acting alone or in collusion with others. There must be intent by the employee to cause the employer a loss and to obtain a financial benefit for the employee or someone else.

Why Do I Need It?
Recommend Employee Dishonesty coverage to most employers, and their first reaction is usually: “I don’t need that. My employees have been with me for years and we’re like family!”

Unfortunately, incidents of Employee Theft are on the rise. Following are several incidents that have happened within the last few months:

BEAUFORT, SC: A box office manager was charged with stealing over $98,000 from a performing arts center. During an internal audit it was discovered that the manager had been writing checks for personal use since 2006. — The Beufort Gazette, 06/08

BEAUFORT, SC: A Beaufort County motor-grader operator was arrested for stealing over $35,000 in diesel fuel (approximately 10,000 gallons). Between March, 2007 and mid June, 2008 the operator was filling his county issued pickup, that has an 80 gallon tank, with diesel fuel from county-owned pumps and then selling the fuel to others. — The Beaufort Gazette, 06/26/08

MYRTLE BEACH, SC: A woman working for a local construction company was arrested after it was discovered she had written over $260,000 in checks over a 5 year period to pay her personal expenses. — The (Myrtle Beach) Sun News, 10/08/08