Author: Dana Coates

As a business owner or member of leadership, the last thing you want to consider is that your employees could be committing theft or fraud against your company.

While rare, it does happen. Luckily, there are things you can do to prevent employee crime from happening in the first place. And, if it does occur, having the right insurance policy in place can be a lifesaver. Take this story of corporate fraud, for example:

Two employees at the Center for Toxicology and Environment Health in Arkansas were tasked with purchasing cellphones for employees and subcontractors. Over the course of years, these employees store over half a million dollars worth of tech products, sold them on the internet, and pocketed the money. Both recently pled guilty to wire fraud conspiracy and were sentenced to federal prison time and repayment of the stolen funds.

Sure these employees were “bad apples” – no doubt! But, company oversight was obviously lacking as well. Here are some tips to help prevent situations that lend themselves to fraud:

1. Always review payments and purchases to vendors to make sure that services were actually performed and items were actually received

2. Monitor your bank and credit accounts and hire an auditor to conduct an investigation if anything does not appear correct

3. Work with an independent, third party auditor to routinely examine receipts and financial records for signs of fraud

4. Don’t rely on a single manager to oversee all financial matters: distribute responsibility across the organization for checks and balances

In addition, here are some signs that you can look for in employees that might indicate they are conducting, or planning to conduct, theft or fraud:

• – Never taking a day off
• – Being overly protective of their workspace and trying to prevent managers or others from accessing it
• – Frequently requesting to work from home, or to work hours that the office is empty
• – Seeking to work without supervision.
• – Financial records disappearing or seeming to have been modified
• – Sudden unexplained changes in behavior
• – Coming in early or staying late to avoid contact with other employees or managers
• – Owing expensive possessions beyond his or her income level
• – Inquiring about information that is not necessary to perform his or her job
• – Certain customers or clients only working with that staff member and refusing to work with anyone else

The truth is that oversight is the best way to prevent employee crime from happening to begin with. But, not all crime is preventable. So, what else can you do to protect yourself? Your business liability insurance may or may not include coverage for employee crimes. Make sure it does – and provides adequate levels of protection based on your business. Click here to schedule a no-cost, no-obligation insurance review and consultation!

But, their mass-production business model won’t be right for everyone 

This month, e-commerce giant Amazon.com broke the news that it will be joining the insurance industry. The venture comes in the form of a partnership with digital insurtech company, Next Insurance. Through the partnership, members of Amazon Business Prime will be able to obtain a small business insurance quote from Next Insurance. Members will also have the chance to purchase general liability, professional liability, workers’ compensation, commercial auto, and tools & equipment insurance from Next Insurance.  

All of this can be done, Amazon promises, without speaking to an agent (or any other human for that matter).  

It’s not surprising that Amazon has figured out a way to get into the insurance industry. InsurTech – the intersection of Insurance and Technology – is growing at breakneck speed, backed by billions of investment dollars. The real question is, however, does the insurance world truly want to become more like Amazon?  

For some businesses, Amazon’s insurance model will do just fine. Amazon is banking on the fact that many small business owners are looking for quick, easy, and (let’s just say it) cheap ways to get their insurance! Amazon’s existing infrastructure allows them to provide a distribution channel to rapidly get a lot of insurance policies in the hands of a lot of businesses.  

It might sound appealing to get quick quotes and bind coverage without needing anyone’s help. However, many business owners can attest, having no one involved can be much less of a benefit when claims happen and you’re trying to navigate the confusing and overwhelming world of business insurance alone. 

This is why I am confident that the true role of the independent insurance agent isn’t going anywhere. At United Western Insurance Brokers, we love technology. We use dozens of different tools to make our employees’ and our clients’ lives easier through connection and automation. However, we also know that no technology can replace the decades of expertise we have accumulated through our work in the industry. No technology can truly listen to our clients’ fears and concerns and guide them through the most important decisions they will face in their businesses and lives.  

So, while the online retail giant may get a lot of things right (who doesn’t love 2-day, 1-day, or same-day shipping?), when it comes to business insurance, we think the true “Prime” experience is having access to a team of people who know their stuff and have your back.  

If you agree, we’d love to talk!