Theft and fraud are real threats for any business, especially without the right checks and balances in place. To save your agency from substantial losses, heed the following advice and implement these protocols to protect your bottom line. Just as important is to protect your operation from front to back with a specialized Staffing Crime Insurance policy, crafted specifically to address perils within the industry.
Background checks.
This straightforward practice can raise red flags on potential candidates before you hire them. Often, embezzlement and fraudulent acts are repeated with different employers, so a simple background check can identify anything that could spark a red flag, including past convictions.
Implement a two signature rule on checks.
Checks and balances make fraud much more difficult. It may be onerous to insist on dual signatures for every check that leaves your premises, but consider placing reasonable dollar limits based upon the overall activity of your bank account. Both individuals who sign checks should ask the tough questions: Who authorized the expenditure? What is it for? If there is any doubt, vendors can be quickly checked out online or by picking up the phone, says Wiss.
Divvy up payment responsibilities.
In a large staffing firm, it can be tricky to separate duties and keep everything orderly. However, it’s in the company’s best interest to separate the person who enters invoice information and the one who writes checks and issues payments to vendors.
About World Wide
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage we have available to protect your staffing business, give us a call at (800) 245-9653 to speak with one of our representatives.