Protecting your business from the inside out.

Small business owners need to be on guard against all kinds of risk. One hidden risk which is commonly forgotten about is the possibility of employee fraud.
Of course, every owner wants to believe that they hired a good team who respects the company and would never even dream of stealing from it. Unfortunately, this isn’t the case. Employee dishonesty can mess with your faith in employees as well as the livelihood of the business – all the more reason to stay on top of it!
Small businesses can help to protect themselves from fraud with these tips.
Use background checks for employees. Before hiring someone on the spot in their first interview, take the time to research their background. Call previous employees, their references, and always do a background check. If something doesn’t check out, you’ll be thankful that you put in the effort before something happens to your business.
Look for change in employees. Unless you’re with your team, you won’t know if something has happened to their financial situation or if they’re looking at the cash draw all the time. Let employees know you are keeping an eye on things around the company by walking around and talking to them.
Create an ethical culture and encourage employees to speak out. Just 48 percent of small businesses have a Code of Conduct – a simple anti-fraud tool. Encourage employees to come to you with any issues and inspire trust in your team.
Keep track of cash. If your business handles money, ensure that all slips, records, and reports are noted about profits and losses at the end of each day. If small amounts of cash are missing each day, it may be worth it to do some digging.
Separate financial duties of employees. No single employee should handle everything financial. For example, the employee who writes the checks should not be the employee who reconciles the bank statement.
So that you can focus on your team, let us focus on covering your hard-to-insure risks. To learn more about how our workers’ compensation programs and products have been serving thousands of insurance agents across the nation, visit the Glendale professionals at Young Insurance!