You never want to think that you would have an employee that would steal, but unfortunately it does happen. However, there are some ways to reduce your risk:
- Do not give signature authority to just one person and require two signatures on checks.
- Separate check issuance and bank reconciling functions.
- If corporate credit cards are issued, require expense reports with original receipts to validate purchases.
- Require an original invoice to issue a check.
- Perform annual audits – both internal and external.
Employee dishonesty coverage can also be purchased, either as an addition to your current insurance policy or on a separate policy. The premium is typically based on the limit chosen and the number of officers and employees who handle and control money, securities, and property. Contact your agent to discuss employee dishonesty coverage and the options you have available to you.