Amid the many exposures that cause loss to businesses one of the toughest to recognize and combat against is employee theft. Call it what you like, employee theft, or the more politically correct term, “asset misappropriation”, it is a violation of trust perpetrated by an employ and tends to be one of the costliest to business owners. In the construction industry, asset misappropriation tends to be more difficult to identify and more difficult to prevent due to the distribution of the workforce and assets over multiple jobsite locations.
Experts recommend taking a two tier approach to minimizing susceptibility to and cost of employee theft. These controls include:
Internal Controls
Establish clear lines of authority and responsibility for financial transactions Multiple person responsibility for financial transactions Comprehensive background checks in the hiring process Equipment inventory and accounting at all projects Appropriate and adequate security of project sites Periodic review of controls by senior management
Insurance
Fidelity insurance (bond) Employee Dishonesty coverage - Covers loss of money or other property by employee Premises Inside - Covers loss of money from theft by other than employee Premises Outside - Covers loss of money while in care of someone else Funds Transfer Fraud coverage
http://www.constructionexec.com/Issues/April_2009/Special_Section3.aspx
http://www.constructionexec.com/Issues/October_2008/Special_Section8.aspx
http://www.missouribusiness.net/docs/problem_employee_theft.asp