Why do many businesses purchase insurance to cover losses due to employee theft and shoplifting?

Commercial crime insurance can help protect your company from significant losses caused by both third parties and internal employees. Provides coverage for loss of money or other assets against theft, fraud, counterfeiting, theft and more. Loss prevention insurance protects the insured against the unexpected and uncontrollable loss of the value of the property covered by the occurrence of specific events. More importantly, now that you know that these exclusions exist, it's time to think about filling the gap with a commercial crime insurance policy.

A company purchases loss prevention insurance as part of its comprehensive coverage to compensate for unusual cases of theft that are not within the normal industry standard loss rate. Depending on the type of business you own, you may find crime insurance that is already offered as part of your general business package, along with liability coverage, etc. Theft of securities and money within your company premises: it covers you if someone steals cash, checks, securities, or other forms of currency of the establishment of your company. The theft of a certain amount of money by an employee is considered a catastrophic incident that is possible but unexpected, just as the theft of a car is recognizable but never expected, so insuring the risk is a good business practice.

For example, if an employer discovers that an employee has managed to steal tens of thousands of dollars over time despite company controls that exist to prevent that activity, loss prevention insurance would reimburse the company up to the amount of the policy.