Question

An employer who wishes a certain amount of coverage under employee theft, on all employees and a substantial amount on 2 key employees would likely:

A. Buy an additional employee theft in the desired amount on the 2 key people
B. Endorse excess coverage for specified employees in desired amount
C. Raise limit on all employees
D. Purchase a separate additional Crime Policy on the 2 key employees

Answer 1

To ensure sufficient coverage for employee theft, an employer should consider a blanket bond for all employees, with additional coverage under a separate crime policy for key employees. This offers both general and specific protection which addresses the different risks posed by various roles within the company.

Step-by-step explanation:

An employer seeking specific amounts of coverage for employee theft might consider a blanket bond that covers all employees for a certain limit and then purchasing additional coverage under a separate crime policy for the two key employees. This strategy provides a baseline of protection against theft by any employee while also addressing the higher risk associated with the two key employees having greater access to the company's assets or sensitive information. It is important for the employer to evaluate the potential risks associated with each role within the company and to structure their insurance policies accordingly to mitigate these risks.

Insurance against employee theft can be particularly crucial in protecting the financial stability and integrity of a business. Effective insurance planning can support a company's long-term viability by providing financial restitution in the face of internal criminal activities. Furthermore, demonstrating to external stakeholders that robust risk management strategies are in place can enhance the company's reputation and trustworthiness.