What Is Fraud Insurance?
Even though many processes and decisions are glued with trust in the business world, humans remain the weakest link. Not only does fraud damage the business relationship, but it can also lead to the outright insolvency of the enterprise. Luckily, though, fraud insurance can help one to mitigate the consequences of fraud.
Fraud insurance compensates for the fraud-inflicted financial damage caused by third parties and employees. Whether this is forgery, dishonesty, theft, embezzlement, or any other form of third-party fraud, fraud insurance can be a savior for employers and business owners.
What Does Fraud Insurance Cover?
The most popular benefits of fraud insurance cover financial losses caused by robbery, theft, forgery, fraudulent orders, and embezzlement. Even though employees are usually considered to be trusted third parties, anyone from temporary workers to top-tier managers can commit fraud, including conspiring with other employees.
Fraud insurance helps business owners to get the required level of protection, reliability, peace of mind, as well as equip their business with the wanted custom protection measures. From intervention in the IT system to unauthorized access to data through spyware and fishing, insurance fraud covers every possible fraud case that has ever taken place with business.
How Much Is Fraud Insurance?
While the total cost of insurance fraud in the U.S. exceeds $40 billion, it’s not possible to give even a ballpark figure for the cost of fraud insurance as it depends on the type and size of the business as well as the multiple case-specific factors.