How Much Should You Trust Your Employees?

Written By: J. Stephen Downey

Protect Your Small Business - From Employees?

As a business owner, you want to protect yourself and grow your company.

Here’s a quick overview on potential risks and how to mitigate those risks, including the ones you may not expect.

Recently, a man from San Diego, Edward Abellana, stole $2,000,000 from his employer and went to prison for 2 years.

He did it by making purchases on a company credit card, altering invoices, and writing company checks for his own benefit. Needless to say, he was living the high life - until he got caught.

Was the company protected against the losses?

Fidelity Coverage to Protect Your Company

Many times, I warn my clients that employees steal more property and money than robbers and fires combined.

Despite this warning, I have had clients lose property because they were too trusting of their employees.

My answer is, “Of course, you think they are trusted - you would not give them access to your property if you thought they were thieves. Best to get fidelity coverage, it is inexpensive and worthwhile.”

Fraud and EPLI

That’s not all. According to

  • Fraud affects private companies more than any other type of organization, with a median cost of $160,000 per loss.

  • Studies show that an employer is more likely to have an Employment Practices Liability (EPLI) claim than a General Liability or Property loss claim.

Cyber Crime | Cyber Theft | Intellectual Property

Another kind of theft is becoming more pervasive - it combines the world of technology and intellectual property.  Employees are stealing and getting unjust enrichment from the theft of data and information from their employer!

When discovered, an employer has few options for recourse unless they have cyber coverage that specifically includes coverage of theft by employees.

Because information is not considered property, Fidelity coverage would not cover these kinds of losses. 

Be careful because most Cyber policies will not cover theft of intellectual property unless it has special wording. It may be a bit more costly but it is worth protecting an employer’s financial stability and reputation.

Protecting Innovation

Worth noting, Intellectual Property Coverage is a different kind of policy than information stolen by employees through cyber crime.

If you’re interested in learning more about an insurance policy to protect your business’s intellectual property - including patents, trade secrets, and trademarks - you can email Megan for a separate quote.

Rest Easier At Night

You worked hard to build your business.

It feels good to have the right insurance protection in place.


Contact our Commercial Lines agent, Megan, with any questions - or to get a fast quote on how to protect your business: