Staffing companies fill the gaps in the rosters of their clients, offering on-demand service and quality candidates. Unfortunately, staffing companies can be susceptible to embezzlement and other financial crimes, just like any other employer. It happens when an employee mishandles their employer’s funds. Investing in crime coverage can shield staffing companies from financial loss, but implementing a staffing company embezzlement prevention plan is essential, too.
The Plans that Staffing Companies Can Enact
Learn more about what this kind of plan entails.
Offer Crime Coverage for Staffing Companies
No embezzlement action plan is complete without staffing firm insurance. Staffing agency insurance offers protection against infractions that an employee may commit while working for a client, including embezzlement and other criminal activity. Insurers should help staffing agencies ensure they have the right kind of coverage if an employee engages in illegal activity. Insurers can also help staffing agencies minimize the liability of such situations by developing risk management strategies in conjunction with clients.
Invest in Background Checks
Thoroughly screening job candidates is one of the best ways to prevent embezzlement and other liabilities from coming to fruition. Background checks are essential to this process because they reveal insights into a candidate’s past, including whether they have a history of criminal convictions. A background check may even disclose information such as pending court cases. Identifying employees who may pose a liability is essential to minimizing the risk of embezzlement, and it can also help keep crime coverage rates low.
Conduct Regular Audits
Audits are another essential tool for preventing financial crimes such as embezzlement. Audits should include a rigorous review of all company accounts, including credit cards and financial reimbursements. Staffing agencies should conduct these audits and encourage their clients to do so, too. Keeping an eye on outgoing funds is the easiest way to catch embezzlement and prevent it from escalating to the point that it causes significant losses.
Make Deposits Daily
Any business that handles a large amount of cash should only accumulate it for as long as necessary. To this end, depositing cash daily is a wise idea because it prevents embezzlement and makes it more difficult for money to go missing. Similarly, employers should be careful when it comes to handling petty cash. Although this is typically a tiny sum, dishonest employees may see it as an easy target. To avoid this, companies should keep a log of the business’s petty cash balance.
Serve Your Clients With Crime Coverage
Crime coverage is an essential form of insurance for staffing agencies and any other company that allows employees to access funds. Embezzlement can start as a minor problem and quickly cost a company thousands of dollars in losses. Staffing companies can work with their clients to identify potential risk factors, screen employees, and keep funds secure. Insurers can contribute to this process, too, by providing both parties with the insurance they need to cover losses from crime.
About World Wide Specialty Programs
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 (877) 256-0468 to speak with one of our representatives.