Skip to main content
  • Claims Center
  • Contact Us
  • Español
  • Brokers & Agents
Hiscox Insurance
Menu Toggle
  • Home
  • Small Business Insurance Small Business Insurance Toggle Menu
    Protect your business, plan for the unexpected, and help your business grow.
    • Top Coverages

      • General Liability Insurance

        The basic protection for claims against your business.

      • Errors and Omissions

        Protection against claims of negligence

      • Professional Liability

        Protection for specific risks in your field.

      • Business Owners Policy

        General Liability plus coverage for property.

      • Short-Term Liability Insurance

        Purchase coverage for a specific period of time.

      • Cyber Security Insurance

        Protection from cyber-related security risks.

      • Workers Compensation

        Protection from work-related illness or injury.

      • More Coverages

        Umbrella, Auto, Directors and Officers, and more

    • Coverage for 180+ Professions

      • Architects & Engineering
      • Beauty
      • Contractors
      • Consulting/Freelancing
      • IT/Technology
      • Landscapers
      • Marketing
      • View All Industries
    • Coverage for 49 States

      • View All States

    Retrieve Your Saved Quote

    Small Business Insurance Main Page

  • Why Hiscox Why Hiscox Toggle Menu
    With a single focus on Small Business Insurance, we provide fast, customized coverage just for you.
      • About Us
      • Customer Stories
      • Ratings & Reviews
      • Our Brand
      • Newsroom

    About Hiscox Main Page

  • Resources Resources Toggle Menu
    Insights and information to empower you and your business.
    • Blog
      • Start Your Business
      • Grow Your Business
      • Protect Your Business
      • Celebrate Courage
      • Business Insurance 101
      • Research & Insights
      • Partner Services
      • Insurance Glossary
      • Profit Calculator
      • Business Templates

    Resources Main Page

  • Policy Management Policy Management Toggle Menu
    We make it easy for policy-holders to make changes, access documents, and report claims.
    • Manage Your Policy Online

      • Hiscox Policy Management

        • Change Business Address
        • Get an ACORD Certificate
        • Get a Certificate of Insurance
        • Issue an ACORD for an Additional Insured
        • Request Policy Documents
        • And more

    • Claims

      • Claims Center
      • Report a Claim
      • Claims FAQs
      • Claims Customer Reviews
      • Cyber Vendor Services
      • Refer a friend

    If you purchased coverage from a broker and would like to update or change your policy, please contact your broker.

    Policy Management Main Page

  • Claims Center
  • Contact Us
  • Español
  • Brokers & Agents
  • About
  • Get a Quote Get a Quote
  • About
  • Get a Quote Get a Quote
  • Blog Home
    Start Your Business
    Grow Your Business
    Protect Your Business
    Celebrate Courage
    Search

    Small Business Insider

    Sign up to get the latest small business tips delivered right to your inbox.
    Close Close
    Protect Your Business
    July 12, 2016
    Embezzlement Report Header

    Hiscox 2016 Small Business Embezzlement Study

    Thought-leadership | Insurance 101
    By: Hiscox Blog

    Share Image

    Embed Image

    Copy

    Share Article:

    To view our most recent study, check out the 2017 Hiscox Embezzlement Study.

    The criminal next door...

    As a small business owner, it can be easy to think of embezzlement as a crime that only occurs at major financial firms on Wall Street. Yet, according to Hiscox’s newly released 2016 Embezzlement Study, white collar crime is a major problem on Main Street – and something all small business owners should be wary of. Take for example the fact that 4 out of every 5 organizations that are victims of embezzlement had fewer than 100 employees; just under half had fewer than 25 employees.  Additionally, the average loss was $807,443. That’s not exactly chump change.

    Who’s stealing from small businesses?

    So, who is stealing from small businesses and why? The 2016 Embezzlement Report (which builds on our 2015 Embezzlement Watchlist) dives deep into both the personal profile and the psychology behind the average small business fraudster and reveals some interesting findings.

    Introducing Helen Helps herself

    The ‘average’ embezzler is a 49-year-old woman who works as a bookkeeper or accountant in a company with fewer than 50 employees. She’s most likely to work in a company in the financial services or non-profit sector, although embezzlement occurs in every industry. She may be a long-time, trusted employee who has responsibility for the end-to-end accounts payable or payroll function in her company.

    While this profile describes a typical embezzler, it’s by no means the only one. Employees victimize companies in every industry, of every size, all across the country. As employers, we want to believe that our employees are as committed to our company as we are, but often that’s not the case.

    The psychology of an embezzler

    It’s equally important to understand why people embezzle from their employer. In some cases, the perpetrator has fallen on hard times and decides to take an unauthorized loan from the company until they get back on their feet. Other times, they feel they are not being paid what they are worth, so they help themselves to a raise. In either case, if they begin by stealing small amounts of money, they may become emboldened if they are not caught, and may continue to steal regularly, until they have pocketed hundreds of thousands of dollars.

    How to prevent small business embezzlement

    Understanding who embezzles and why they do it is one piece of the puzzle. Preventing this type of white collar crime is another. The 2016 Embezzlement Report offers several strategies for prevention, including implementing checks and balances, dividing up responsibility for the accounting function, and having bank statements mailed to the owner’s home rather than the business address.

    Not all theft is conducted by employees. Some is perpetrated by outsiders with the help of an employee, who may not even know they are abetting criminal activity. Cyber deception is a new kind of fraud, by which employees may be scammed by a bogus email that appears to come from a manager or vendor. The employee, thinking they are helping out in what is often described as an emergency situation, transfers funds without realizing they are sending the money to a hacker.

    Workplace culture counts

    Whether your company is at risk from internal or external theft – or both – it’s important to know the warning signs, and to educate your management team and employees about this issue. Promoting a culture of honesty and transparency, while taking precautions to prevent being victimized, will go a long way toward preventing theft.

    Protecting yourself with business insurance

    You can also protect your company with insurance against employee theft. From the moment you hire your first employee, coverage against theft should be part of your business insurance package. Since most embezzlement losses are never fully recovered, and prosecution can be costly, insurance against theft makes smart business sense.

    To learn more about embezzlement and how you can prevent it in your company, download The 2016 Hiscox Embezzlement Study: A Report on White Collar Crime in America.


    Protect Your Business

    Protect the business you’ve worked so hard to build. Get a fast, free quote and your business could be covered today.

    Get a Quote
    Get a Quote
    Subscribe to our newsletter

    Related Articles

    4 Min Read
    Woman's hand on laptop keyboard. Cyber icons. Error message. Top cyber risks in 2021.

    The top 5 cyber risks for businesses in 2021

    Cyber | Insurance 101

    Cyber risks increased as a result of Covid-19 in 2020. Business owners still need to stay prepared against those threats plus new ones in 2021. Here are the top five cyber risks to watch for in 2021 and how you can protect your business. Read More

    3 Min Read
    Woman at work using hand sanitizer. OSHA COVID-19b guidelines.

    New OSHA guidelines on how businesses should handle COVID-19 in the workplace

    Claims | Management

    New OSHA guidelines on COVID-19 in the workplace are here. Here's everything you need to know if you're a business owner and have employees.  Read More

    4 Min Read
    how much does business insurance cost? Insurance icon.

    How much does small business insurance cost?

    Insurance 101 | Professional Liability

    Wondering how much business insurance costs? Here are some of the factors that go in to how much business insurance costs and some examples of what a hypothetical small business might pay for insurance.  Read More


    We’re here to help.
    We provide tailored insurance for the specific risks you face, so you can take the right risks to grow your business.
    Get a Quote
    Get a Quote
    Blog, Footer2021
    • What We Cover
      • Business Insurance
      • General Liability Insurance
      • Professional Liability Insurance
      • Errors and Omissions
      • Cyber Security Insurance
      • Workers Compensation
      • Other Coverage
    • Who We Cover
      • Small Business Owners
      • LLC
      • Side Hustle
      • Contractors
      • Home Businesses
      • 180+ Professions
    • For Our Customers
      • Refer a Friend Program
      • Covid-19 Response
      • Claims Center
    • For Business Owners
      • Save with our Partners
      • Hiscox Podcast for Business
    • About Hiscox
      • About Us
      • Careers
      • Contact Us
      • Hiscox Corporate
      • Investors
      • Foundation
      • Newsroom
      • We Stand Together
      • Affiliate Partner Program
    Blog, Footer, 2nd Row (new)
    • Accessibility
    • Site Map
    • Privacy Policy
    • Terms of Use
    • Legal Notices
    • Español

    Feefo Reviews: Hiscox rated 4.8/5 with 2,032 reviews between January 31, 2020 - January 21, 2021

    © 2021 Hiscox Inc. All rights reserved. Underwritten by Hiscox Insurance Company Inc., 104 South Michigan Avenue, Suite 600, Chicago, IL 60603. As of December 31, 2019, HICI had admitted assets of $778,266,779 and policyholders surplus of $215,333,986. Total liabilities were $562,932,793 (inclusive of $236,274,591 of loss reserves) and paid up capital stock was $4,242,000.

    icon-facebook
    icon-youtube
    icon-twitter
    icon-linkedin