Many Law Firms and other small organizations are concerned about outside threats of theft. The outside thefts are well publicized by the media. But there is a dirty little secret that small entities ignore. People are surprised to learn the number one cause of theft for most small organizations is their own employees. These thefts can bankrupt a small organization if uninsured or underinsured.
Hiscox Insurance Company writes Crime Insurance and Cyber/Data Theft Insurance throughout the US. Hiscox conducted a recently released study on employee theft. The Hiscox study found that over 80% of all embezzlement cases are with entities that are less than 150 people. These embezzlements mostly involved long term “trusted” employees. The law firm theft of funds that we have seen have involved similar scenarios described in the study. The study also discusses the controls needed in an organization to help discourage employee embezzlement.
The Hiscox study also briefly touches on the growing Cyber threat and steps that can be taken to help minimize this exposure.
If interested in reading the entire study, cut and paste the attached link.
L Squared Insurance agency can help with providing insurance protection for theft and cyber threats using Hiscox and a variety of other insurance carriers.