From Chubb Executive Protection
No company is immune to crime losses.
Mergers, acquisitions, downsizing, restructuring, rapid expansion, and globalization have increased
the challenges of maintaining a strong system of internal controls. Likewise, the expansion of
computers has drastically changed the speed with which fraud can occur.
As a result, employee theft is on the rise.
The Association of Certified Fraud Examiners (ACFE), in its 2002 Report to the Nation on
Occupational Fraud and Abuse, estimates that fraud costs U.S. businesses more than $600 billion
annually. Furthermore, the report states:
More than half of the frauds in the study caused losses of at least $100,000, and nearly
one in six caused losses in excess of $1 million.
63% of fraud schemes were perpetrated for more than 12 months before detection, with
more than 40% lasting two years or more.
Employee fraud and abuse accounts for about 6% of total annual revenue, or about
$4,500 per employee.
In another survey, 39% of asset misappropriations was the result of billing schemes.
The cost of this fraud comes right off a company’s bottom line. Purchasing schemes involving
kickbacks, accounts payable fraud involving ghost vendors, payroll and check fraud, or inventory
theft can reduce corporate profits by millions of dollars.
C H U B B E X E C U T I V E P R O T E C T I O N
Chubb Group of Insurance Companies
Chubb’s Crime Insurance policy is distinctive in the marketplace. Our comprehensive policy incorporates features designed to
provide maximum insurance to companies that suffer an employee theft loss.
A World of Risk. A World of Coverage.
CHUBB CRIME INSURANCE PROTECTION FEATURES INCLUDE:
Employee theft coverage—Chubb’s policy provides insurance for losses of money or securities
that have been embezzled by an employee through acts of theft or forgery.
Premises coverage—Our policy insures losses of money or securities that are unlawfully
taken, destroyed, or disappear from our customer’s premises. Insurance also extends