Most business theft is not a break-in.
It is someone trusted, over a long period, in small amounts that add up. Standard property insurance covers burglary, not the bookkeeper, and that gap is where the larger losses actually sit.
Talk to a broker What it coversTheft by employees, money in transit, forgery and fraudulent transfer
Any business handling cash, stock or client funds
Who has access to money, and what your approval process looks like
What is crime or employee dishonesty insurance?
It covers money, stock or property stolen from your business by employees or by outsiders through deception rather than force. The main sections are employee dishonesty, sometimes called fidelity cover, plus money on premises and in transit, forgery, and fraudulent transfers. A standard property policy covers theft where there is evidence of forced entry. It does not cover someone with a key, a login and your trust.
Employee theft is usually discovered by accident, months or years in, and a standard property policy will not respond because nobody forced a door. The money is gone, and so is the cost of proving what was taken.
Four ways money leaves a business.
Employee dishonesty
Theft of money, stock or property by staff. Usually small amounts over months or years, discovered by accident.
Money and securities
Cash on the premises, in a safe, in transit to the bank, or in the hands of the person carrying it.
Forgery and alteration
Cheques altered or forged, and instruments issued in your name that you did not authorise.
Fraudulent transfer
Money sent because someone impersonated a supplier or an executive. Often better covered under a cyber policy, ask which of yours responds.
Client property
For businesses holding money or goods belonging to clients, where a staff theft becomes your liability.
Investigation costs
The accountants and specialists needed to establish what was actually taken, which is rarely obvious.
Three controls insurers ask about.
These reduce both your risk and your premium, and none of them cost money to implement.
Separation of duties
The person who approves a payment should not be the person who makes it, or the one who reconciles the account.
Someone else reads the bank statement
An owner or director reviewing statements directly, not a summary prepared by the person handling the money.
Mandatory time off
Long-running frauds usually need the person present to maintain them. Uninterrupted absence is when they surface.
A situation we see.
A trusted bookkeeper covers a personal shortfall by approving small payments to a supplier that does not exist. It runs for two years and surfaces during a holiday. No door was forced, so the property policy does not respond.
Nobody wants to buy this, because buying it feels like an accusation.
It is not about distrust. It is about scale.
Owners tell us their staff are family, and they usually are. But the losses we see are almost never from someone who joined intending to steal. They are from a long-serving, trusted person who hit a personal crisis and thought they would put it back.
The cover is inexpensive relative to what it protects, and the controls an insurer asks for are good practice regardless. If you decide not to buy it, adopt the three controls anyway. They cost nothing and they prevent more than the policy does.
What owners ask us.
Is employee theft covered by my business insurance?
Usually not. Standard property policies cover theft with evidence of forced entry. Theft by someone authorised to be there needs employee dishonesty or crime cover.
How much cover do I need?
Think about the largest amount one person could remove before anyone noticed, not what they earn, but what passes through their hands. That figure surprises most owners.
Is money stolen by an email scam covered here?
Sometimes, and sometimes under cyber. The two overlap and the wording differs between insurers, so it is worth confirming which of your policies responds rather than assuming one of them does.
Do I have to prosecute to claim?
Insurers do not always require it, but they will require a proper investigation and evidence of the loss. This is where investigation-cost cover earns its place.
We are a small family business. Do we need this?
Small businesses are more exposed, not less, because one person often handles invoicing, payments and reconciliation. Separation of duties is harder when there are five of you.
Does it cover theft by a contractor or cleaner?
It depends on the wording and whether they count as an employee. Tell us who has access and we will make sure the definition matches your situation.
Advisory firms are targeted in tax season. cyber for professional firms.
Who could take the most before anyone noticed?
That question sets the limit. It is uncomfortable and it takes two minutes. Tell us who has access to money, and what your approval process looks like.