protecting yourself against employee dishonesty
Are you aware of the benefits of employee dishonesty insurance? Many tanning salon owners aren't, although this coverage can be as important as fire or liability insurance when it comes to protecting a business. If you have one or more employees, please take a few moments to learn how this useful and affordable coverage can help safeguard your business.
Important Protection
Employee theft ranks as one of the most under-reported crimes in the United States today. Estimates vary; however, it safely can be said that more than $2 billion worth of money and property are stolen by trusted employees each year. Unlike burglary and robbery, losses due to employee dishonesty are excluded under virtually all commercial property policies. In other words, without specific coverage, business owners are at risk. Unfortunately, employee dishonesty insurance often is overlooked by tanning salon owners who choose not to be suspicious of their employees. This is an unfortunate situation, as a salon owner's most trusted employees are in the best position to use their knowledge of his or her business operations to steal or embezzle from the salon.
What can salon owners do to protect themselves from employee dishonesty? In addition to securing adequate insurance protection, the best available defense includes implementing strict operating controls in combination with careful employee supervision. Some of these measures are outlined below. But first, take a brief look at some of the commercial crime exposures facing tanning salon owners and the coverages available to protect yourself against them.
Crime coverages can protect salon owners against losses from robbery, burglary, theft, embezzlement and other risks and can be tailored to fit the size and scope of your business operation. In most cases, your business property and liability package policy can be endorsed to provide coverage against employee dishonesty as well as the loss of money and securities from your premises, and the loss of other covered business property such as computers.
One important point to remember about employee dishonesty claims is that dishonest acts must be committed with manifest intent--that is, a loss resulting from an unethical act, such as lying, must be due to the employee seeking personal gain. Without manifest intent such claims would be disallowed. Also, inventory shortage claims are excluded from employee dishonesty policies because losses can occur from a variety of reasons besides theft, such as accounting errors. Consider also that money and security claims and business personal claims are not the only losses that can be covered under employee dishonesty. Riders are available to protect salon owners against check forgery, credit card misuse and computer fraud to supplement your existing protection at extra cost.
There are several common-sense measures that can help minimize a salon owner's risk of theft. Checks immediately should be stamped "for deposit only," for example, and invoices should always be stamped paid to circumvent the chances of paying the same invoice twice. Implementing security controls and procedures, such as installing video surveillance cameras in your manager's office and other key locations, also can help deter the risk of theft. However, for true peace of mind, your best bet is to purchase adequate dishonesty insurance coverage. Consult with your insurance agent or broker for complete details.
No matter how large or small your salon may be, securing adequate coverage is essential for protecting your business and your peace of mind. Universal Insurance Facilities, Ltd. offers a variety of flexible and affordable coverages for every size salon. Universal's program is rated A++ (Superior) by A.M. Best and Company--that's the highest possible rating from the most respected rating service in the country.
For more information about Universal's specialized tanning salon insurance coverages, please contact Universal Insurance Facilities, Ltd., P.O. Box 40079, Phoenix, AZ 85067-0079 or call (800) 844-2101 or fax to (480) 970-6240. Our e-mail address is located at www.vpico.com/universal.
