A Business Insurance Update
Criminals generate a substantial loss to businesses every year. In the United States, more than 23 million criminal offenses were committed in 2015, resulting in approximately 19 billion in economic losses to the victims and $187 billion in government expenditures on police protection, judicial and legal activities, and corrections (U.S. Department of Justice).
Business insurance can protect you from many different kinds of criminal activity. We thought it would be worthwhile to identify a few ways criminals try to steal from your business.
Cyber Crime – Your business has a greater chance of suffering a cyber loss than it does of having a fire. Therefore, you need cyber liability insurance. Cyber criminals can create loss for your business through social threats and phishing. Phishing factored into just under one-third of confirmed data breaches, and the tactic was used in 92 percent of social-related attacks. An email can appear to be from a legitimate sender, but actually contains a malicious attachment or link that can give spear phishers access to banking credentials, trade secrets, and other information. (Travelers Insurance Company)
Hackers can also get into your system and steal client’s information. Your business will be held liable for any loss suffered by your customers.
Burglary – There is also a growing threat to your business through loss of equipment and products due to theft. Retailers, for example, lose about $30 billion per year. Your business insurance policy should cover this loss, subject to your deducible.
Employee Theft - No employer is immune from the risks associated with employee dishonesty. Employee fraud cost employers over $400 billion in 2016, according to the Association of Certified Fraud Examiners (ACFE). Small privately held businesses are the most exposed to employee theft, but all firms are at risk. The good news is that insurance exists for employee theft and dishonesty incidents, and fortunately, many victimized companies do have crime insurance to cover such instances.