Employee Dishonesty
Optional Cover Extensions
- Third Party computer and funds transfer fraud
- Third Party Cheque Forgery
- Cover for losses prior to commencement
Sounds very exciting compared to Employee Dishonesty cover but in reality it is an Employee who represents the real risk. This extension provides cover for obvious potential losses involving electronic fund transfer systems to more unexpected losses resulting from a third party accessing your computer systems remotely.
Claims might include the more "glamorous" type where a hacker manages to arrange for the company to pay out money, cancel a debt or deliver goods without payment. These frauds are rare unless an Employee is in collusion.
Funds Transfer Frauds represent a greater risk. We not only cover electronic transfers but those that are written, by telephone or facsimile.
"It's very difficult to commit a major fraud against a company without internal assistance"
Simon Dawson, head of corporate investigations at the Risk Advisory Group
This extension covers your client against loss they sustain as a result of forgery of, or fraudulent alterations to any cheque.
You may have heard of the change of name to Inlandia Revenuenu or more recently the forging of cheques from replacement books stolen by postmen. That is the risk that this extension is designed to cover.
UK banks carry a liability for forgery of cheques and therefore in the UK it is often possible to recover the funds. This extension takes away the doubt and pays first and recovers later. The banks will often apply pressure to commercial customers to try to dissuade then from claiming.
Jail for cheque theft post worker
A former Royal Mail worker has been jailed for more than two years after taking part in a scam to steal company cheques as they went through the post.
bbc.co.uk 13/09/04
Where cover against employee dishonesty losses already exists we can extend cover to include losses occurring during the previous cover once the discovery period under that cover has expired provided that there hasn't been a break in cover.
The nature and extent of cover will be that which applied at the time of the loss or that of our cover if less.
The average fraud lasts for 18 months before it is detected.
If you would like to know more about how we can help or have any opportunities to explore, speak to your Norwich Union Account Manager or contact us directly.
