Employee Dishonesty

What Does Employee Dishonesty Mean?

Employee dishonesty refers to any fraudulent act committed by an employee or a group of employees that could potentially lead to financial losses for a company. To safeguard its interests, a company may purchase a commercial crime policy or standalone employee dishonesty insurance.

Employee dishonesty is also known as commercial dishonesty.

Insuranceopedia Explains Employee Dishonesty

According to the Association of Certified Fraud Examiners, approximately 6 percent of total revenues for companies, equating to about $400 billion per year, are lost due to fraud and embezzlement. Common cases of employee dishonesty include theft, computer or fund transfer fraud, embezzlement, robbery, burglary, and forgery involving money, property, or securities. Consequently, insurance policies are available to help companies mitigate the costs of such losses, which can be substantial and even crippling for small businesses.