Hiscox Embezzlement Study
The number of perpetrators involved in 79% of crime cases
What is more than one?
The department that shouldn't be given end-to-end responsibilities.
What is accounting?
This insuring agreement covers theft of money, securities, and other property by a colleague.
What is employee theft?
This exclusion prevents crime coverage from applying to owners.
What is acts committed by you?
This shift in business operations is largely responsible for the intersection of crime and cyber risk today.
What is digitization?
The key reason why most employee theft occurs after an employee works somewhere for a few years.
What is familiarity?
Employers should run these for all employees who handle money . . . both at hire and periodically after.
What are background and/or credit checks?
Coverage is provided for payments of losses that are discovered during the policy period
What is the discovery form?
This exclusion eliminates coverage for losses related to patents, trade secrets, customer lists, financial information and other nonpublic information.
What is confidential or personal information?
Traditionally, crime policies were written to cover these types of losses that have blurred the lines with cyber.
What are direct losses?
85% of cases were perpetrated by this title or above
What is the manager level?
This loss control strategy is often synonymous with HR departments.
What is maintaining a healthy culture?
Coverage is triggered for losses that occur during the policy period.
What is loss sustained?
Loss that is based upon a discrepancy in the value of goods or materials at the beginning of an accounting period vs. the end of an accounting period.
What is an inventory shortage?
Traditionally, cyber policies were written to cover these types of losses that have blurred the lines with crime.
What are indirect losses?
A life event that triggers a financial crisis usually creates this fraud condition.
What is motive?
Employers shouldn't assume these employees wouldn't steal.
What are long term employees?
This covers loss from the criminal directing a financial institution to transfer, pay or deliver funds from the insured's account.
What is funds transfer fraud?
This exclusion would prevent coverage if the named insured had awareness of theft before the policy period.
What is Acts Of Employees Learned Prior To The Policy Period?
Working with one carrier to place the crime and cyber can avoid this general issue no insured likes.
What is a coverage gap?
The most common type of fraud found in the study.
What is billing fraud?
Employers should monitor this if they want to spot employees with motive to steal.
What are drastic lifestyle changes?
This covers theft resulting directly from the use of any computer to fraudulently cause a transfer of that property from inside the "premises" or "banking premises"
What is computer fraud?
This exclusion is "carved back" in the employee theft insuring agreement.
What is Acts of Employees, Directors, Trustees, or Representative?
This condition is vitally important to understand when placing both a crime and cyber policy.
What is the other insurance condition?