Can business insurance cover employee theft?

Business Insurance Coverage for Employee Theft in Oregon

In Oregon, business insurance can include coverage for employee theft, but it requires specific policy types tailored to this risk. Standard general liability insurance typically does not cover losses caused by employees stealing from the business.

Types of Insurance Covering Employee Theft

• Employee Dishonesty Bond: Also known as a fidelity bond, this insurance protects businesses from financial losses due to fraudulent acts by employees, including theft of money, property, or securities.
• Crime Insurance: This broader policy can cover various crimes such as employee theft, robbery, forgery, and fraud. It is often customizable based on business needs.

Operational Considerations

• Policy Limits and Deductibles: Review and select coverage limits that align with your business’s exposure to employee theft. Deductibles will affect your out-of-pocket costs when filing a claim.
• Employee Classification and Screening: Implement thorough hiring practices and employee classification to reduce theft risks and support insurance claims if needed.
• Recordkeeping and Internal Controls: Maintain accurate financial records and implement strong internal controls such as segregation of duties to minimize theft opportunities and comply with insurer requirements.
• Reporting Requirements: Understand insurer reporting timelines and documentation needed to file claims related to employee theft.

As of 2026

Oregon businesses should consult with insurance providers or brokers to obtain the appropriate employee theft coverage. Policy terms and availability may vary, so regular review of insurance needs is essential for operational risk management.