As a business owner, you must be vigilant about the potential risks linked to employee dishonesty and theft. In the face of this pervasive threat, obtaining crime fidelity insurance alone is not enough. It is equally crucial to implement robust background check procedures during the hiring process. Surprisingly, the background checks you employ play a pivotal role in your company’s fidelity and crime coverage. Understanding this correlation is paramount for every employer looking to protect their business from potential harm. In this article, we explore the crucial role of employee background checks in bolstering your crime fidelity insurance and fortifying your business against financial losses.
About Crime Fidelity Insurance
Crime and fidelity hazards pose real threats to your business, prompting the need for reliable insurance coverage. However, before issuing or extending coverage, your insurance carrier will assess your company and employees for avoidable exposures. Understanding coverage exclusions and the impact of background checks during the hiring process is crucial to ensure comprehensive protection.
Crime Fidelity Insurance Coverage Exclusions
Crime insurance policies often come with exclusions for certain risks. Notably, any losses known before the policy period won’t be covered. If evidence suggests you were aware of a loss before obtaining coverage, it will likely be excluded from most crime fidelity insurance policies.
Consequences of Prior Coverage Cancellations
Employees with a history of fidelity insurance cancellations may face exclusion under your crime policy. If an insurance carrier previously canceled coverage for an individual, chances are they’ll refuse coverage for that person going forward.
Employee Dishonesty and Criminal Actions
Discovering dishonest or criminal actions by an employee may result in the exclusion of coverage for that individual. Most fidelity policies won’t cover such employees if you continue to employ them.
Protecting Your Crime Fidelity Insurance Coverage
Comprehensive background checks play a pivotal role in securing the best possible coverage for your company’s crime and fidelity risks. Insurance carriers conduct their own underwriting, evaluating prior claims, criminal history, and sometimes credit history to determine risk. Including advanced background checks in your hiring process helps avoid hiring high-risk individuals, ensuring a smoother insurance process.
Routine background checks should consider not only the data but also the age of the information, the circumstances surrounding any incidents, and the risk factors associated with the employee’s potential position. Being well-informed empowers you to discuss any potential concerns with prospective employees and seek possible coverage appeals with your carrier.
Safeguard Your Business with Crime Fidelity Insurance
The potential risks of theft, intellectual property breaches, and employee data mining underscore the need for reliable crime fidelity insurance. Understanding underwriting factors and the significance of background checks in hiring ensures you secure and maintain the essential coverage your business requires.
By investing in this coverage and employing thorough background checks, you can protect your business from potential threats, safeguard your investment, and ensure the continuity of your company’s success. Proactive measures, supported by a comprehensive understanding of the insurance process, are vital to navigate potential risks and maintain a secure and thriving business environment. To learn more and find a solution that works for your business,
About Haughn & Associates
Founded by Michael Haughn in 1986, Haughn & Associates is a full-service, family-owned, independent insurance agency based out of Dublin, Ohio. H&A strives to provide the best possible price and unique insurance solutions across a myriad of industries, including construction, IT, Habitation & Commercial Property, Agriculture, and Engineering. Devoted to providing the best of business insurance, life and disability insurance, personal insurance, employee benefits, and bonds, H&A is proof that success lies in long-standing client relations and satisfaction. To learn more about how H&A can be of service to you, contact us at (877) 802-2278.
