Employee Dishonesty
Target Trades
If your local Norwich Union branch is able to quote the commercial risk then generally Employee Dishonesty will be available.
It should be noted that Banks, City Dealing and Trading Risks, Stockbrokers, Commodity Brokers and other financial institutions are decline risks.
- Services
- Retail and Wholesale
- Leisure and Wellbeing
- Industrial
- Construction
- Motor Trade
- Property Owners
- Agriculture
Employees have access to client's own and third party property. Major users of fund transfer systems, Professional services, local authorities, schools and universities regularly purchase this cover.
Losses can arise from asset misappropriations, including paying fictitious invoices, ghost employees on the payroll, false expense claims, cheque tampering and diverting funds via payment systems.
Employees have access to high turnover of stock and money on the premises. The stock can sometimes be very desirable with a high resale value.
Losses can occur from the removal of stock from the premises, fraudulent refunds, manipulation of banking / stock control records and collusion with suppliers / customers.
Stealing from the workplace costs British retailers more than £1.5bn in the 12 months to June, according to the fifth European Retail Theft Barometer, published in October 2005. Whilst most of this loss is absorbed within "shrinkage" extreme cases can lead to insolvency. 37% of retail crime losses are due to staff theft - Source: Retail Crime Survey 2002
Allegations of £1m fraud send top wine merchant into receivership
A fine wine merchant has gone into receivership after an alleged fraud involving the unauthorised sale of more than £1m worth of prestigious clarets and burgundies from its cellars.
independent.co.uk 22nd April 2006
Employees have access to attractive stock as well as money on the premises. Leisure / social clubs, hotels, private care, charities and surgeries regularly purchase this cover.
Losses can arise from misappropriations of cash payments to settle bills / fees, trusted committee members with access to club funds, fraudulent grants to fictitious charities and stealing guests' possessions.
Higher risk as many employees will be part time or temporary.
Employees can access large quantities of stock. Manufacture of small high value goods presents the highest level of risk.
Losses can arise from the theft of physical assets, contract tenders (kickbacks), collusion with suppliers / customers, paying fictitious invoices and misappropriation of payments received.
Employees have access to stock, which can involve valuable and desirable items. Casual labour and sub-contractors make this a high risk sector.
Losses can arise from collusion with sub-contractors to award inflated contacts or agreeing to unnecessary work being completed, issuing false payment or completion certificates, paying fictitious invoices and misappropriation of payments received.
Fending off fraudsters
FRAUD is cropping up with increasing regularity in the press these days and headlines along the lines of "Construction industry sector prone to bribery" do not make for comfortable reading.
Construction News 01/12/2005
Employees' access to high value mobile items of stock make theft easier to perpetrate. The arrangement of finance is also a high risk area. Flexible pricing and frequently large cash payments can increase the risk. There is also a high resale value for raw materials and parts.
Losses can arise from the theft of high value physical assets, collusion with suppliers / customers, paying fictitious invoices and misappropriation of cash payments received.
Employees have access to tenants or resident association monies.
Rental income can be misappropriated, overpayments / unjustified work given to sub-contractors in return for financial gain and renting "vacant" properties to unauthorised tenants in return for cash payments.
The rules for housing associations require them to have some kind of cover in place.
There are fewer opportunities for theft as there is a relatively low amount of attractive stock or money, however the use of casual labour increases the risk. Contracts for the supply of produce may be arranged fraudulently at under or over value
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.
