Sometimes the easiest way to increase your income is to look for legitimate opportunities in your existing book of business, rather than solicit new customers. It is conservatively estimated that less than 15% of the nation's businesses bond their employees. American business loses an estimated $53 billion each year as a result of employee dishonesty. By examining these truths that dispel the myths about Fidelity insurance you can provide a valuable service to your commercial clients. To further illustrate the need for adequate coverage and limits, the actual loss examples below show the reality of avoidable circumstances. We will be updating these examples regularly. MYTH: My customer has a package policy that already includes crime coverage. TRUTH: Your customer may still be under-insured. Unlike property insurance, there are many misconceptions in determining limits when looking at crime exposures. For those with crime coverage, especially package policies, limits are often inadequate. MYTH: My customer has a business that only deals in raw materials, nothing valuable to steal. TRUTH: Our experience has shown that thefts can extend to such apparently mundane things as: wooden pallets, plastic pellets used to manufacture soft drink bottles, bulk fertilizer, animal byproducts, wooden spools, metal shavings, burlap bags, and the like. Losses involving such "unglamorous" materials can often add up to six figures over a relatively short time. MYTH: Since the package policy my customer has lists the business and the pension plan, they are sufficiently covered, and they satisfy their ERISA compliance. TRUTH: It is good to have coverage for both, but you now have shared limits and unfortunately by combining both under one policy you now have "shared" limits when package policy limits are often too low to cover both. If a crime were committed against both, the pension plan would be covered first. Crime Loss Examples The following are some recent loss examples from a variety of types of insured, type of loss and some where loss amount exceeded limit of insurance (For confidentiality, names have been omitted).   Insured: City of Johnson   Coverage: $100,000 Employee Theft with $1,000 deductible   Amount of Loss: $76,532.01 The insured documented missing cash and checks attributable to the principal totaling $76,532.01. The principal, City Clerk and Treasurer, was responsible for depositing all funds collected by the City Clerk's Office. The principal would remove a check(s) from a daily deposit and reduce the day's deposit by the withheld check amount. The principal would insert the withheld checks in a subsequent deposit and remove cash from the subsequent deposit for an amount equal to the inserted check(s).   Insured: E & R Holdings, Inc   Coverage: $10,000 Employee Theft with $2,000 deductible   Amount of Loss: Approximately $177,580.00 The scheme took place over a period of approximately 33 months and was discovered by the company's Director of Loss Prevention while viewing a store's CCTV system wherein he observed the company's Internal Auditor destroying a deposit record and leaving the store with cash. The former Internal Auditor whose job function involved auditing 24 convenience store, manipulated sale numbers by entering fictitious voids, thereby reducing sales, and taking the cash difference. She kept individual voids under $500 thereby avoiding the >$500 threshold for management intervention.   Insured: ATA   Coverage: $10,000 Employee Theft with $500 deductible   Amount of Loss: $123,687.95 The insured discovered that an employee responsible for accounts receivable and operation of the ATA's manual credit card terminal was accused of issuing fraudulent refund transactions ("charge backs") to several of her personal debit cards. Charge backs netted out against ATA deposit to disguise the fraudulent transactions   Insured: Cee Research Foundation   Coverage: $500,000 Employee Theft with $1,000 deductible   Amount of Loss: $92,110.29 Over an eight month period, the Insured's former Account Payable Clerk allegedly took valid, duly signed Cee Research Foundation checks payable to American Express and submitted them to payment of her own American Express account. Note: Coverage for limits at and below $500,000, direct to your Bond Team. For higher limits, contact your Regional Office.