Other Safeguards Against Theft

Other Safeguards Against Theft


        Protect Yourself Against Illegal Acts with Crime Insurance

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In addition to purchasing insurance protection against theft, consider implementing these safeguards in your business:

     • Secure raw materials, semi-finished goods and finished goods in walled,
     fenced or locked areas on your premises.

     • Limit and control your employees’ access to storage areas, and
     consider implementing a key management program.

     • Inspect merchandise and goods thoroughly when they are received as
     shipments.

     • Ensure that there is more than one employee inspecting outgoing and
     incoming shipments.

     • Conduct periodic inventory counts, and compare that information to your
     records.

     • Implement a concrete strategy for handling returned merchandise.

     • Establish a line of authority at your organization, and ensure that everyone
     is acting responsibly.

     • Separate your accounting and operating functions.

     • Create a “paper trail” for each transaction.

     • Screen new employees to weed out applicants that are potential liabilities.

     • Continually train employees concerning how to detect theft and encourage
     honest behavior at your organization.

     • Make sure that the enforcement of rules in consistent and constant.

     • Do not tolerate employee theft on your premises, and consider
     prosecuting offenders.

     • Require mandatory vacations for personnel handling payments.

You may feel that your employees would never steal from you or that your business would never be the victim of theft, but the harsh reality is that nearly every business is eventually victimized by fraud or theft. In this day and age, thieves (including your employees) do not need direct access to cash to steal from you; merchandise, supplies and securities are all fair game. You may also be susceptible to losses in the event that finished products or even raw materials are stolen right from under your nose. Essentially, any product can be a target for thieves if there is an opportunity to make a resale profit.

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