January 2010
       
Brought to you by First Choice Insurance      
 

Crime Insurance: A Vital Need in Today's Business Environment

According to a 2008 study conducted by the Association of Certified Fraud, U.S. businesses lose about 7% of their annual revenues to fraud.  This equates to a staggering $994 billion loss each year nationwide to employee fraud.  Even worse, occupational fraud schemes are extremely costly to a company's bottom line, with the median loss in the 2008 study coming in at $175,000! The three most common categories of employee scams are: fraudulent statements; asset misappropriation; and bribery or corruption. Two out of five businesses suffer more than five instances of fraud, and one in four loses at least $1 million as a result of fraud.
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Independent Contractors: Evaluate Business Contracts Carefully

In the U.S. today, one result of corporate downsizing, is that there are many independent contractors in the marketplace.  After picking themselves up off the ground and dusting off their overcoats, many former members of "Corporate America" have struck out on their own.  With that shift comes freedom, but also new anxieties, and, perhaps, new found insurance issues.  One such issue is that of the business contract.
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Reduce the Risk of Employee Fraud with These Quick Tips

Most business managers and owners are well aware of the threat of loss from outsiders, and use a variety of methods to reduce this risk.  From locks on the doors, to security guards and dogs, to complex electronic burglar alarm systems, many preventative steps are taken. However, it is often the case that less attention is dedicated to reducing the risk of theft by an insider. But it only takes one bad apple to do significant damage.  Depending on the person's position within the company, and the length of time the theft continues, substantial losses can result.  Business owners often have a tendency to believe "it can't happen here." Having said that, loss control experts recommend two general approaches to reducing vulnerability to theft by insiders:  measures to decrease the probability that employees will commit the crime, and measures to increase the perceived probability of discovery and punishment. 
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