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Insurance Bureau of Canada/pe/Business/Business Crime/Employee Theft

Employee Theft

​While it may be difficult to consider employees or volunteers as a potential threat to your organization, theft from within the organization does happen. Specialized crime coverage is available to mitigate the risk of internal theft and fraud. 

Who is at Risk?

Small business operations that have limited procedures, policies and internal control mechanisms in place are particularly vulnerable to employee theft and fraud.

Examples of dishonest activity within an organization include:

  • Cargo theft
  • Theft of cash, cheques, business equipment or client property
  • Data theft or cyber-related embezzlement
  • Forgery


Who to Contact

If the perpetrator is currently employed, you should first consult your organization's HR department to obtain guidance on next steps.  If the matters are criminal in nature, or if you continue to be victimized by a current or past employee, contact the police immediately. The police will guide you through the steps you need to take to protect the crime scene and gather evidence for criminal charges. 

Consult with your lawyer and human resources leadership team to determine the course of action when the perpetrator is currently employed. 

Contact your insurance representative to report the incident and confirm what coverage you have in your business policy.

How to Manage Theft Risks 

There is much you can do to manage theft risks. Speak with your insurance representative about best practices for fighting employee theft and further guidance on risk management.

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