Restoration Company Insurance Claim Scenario: Employee Dishonesty and Falsified Expense Reports
From time to time, we come across exciting claims scenarios involving restoration contractors. We like to share these situations because it highlights the need for lesser-known insurance coverages like crime insurance. It helps restoration firm owners avoid potential claims like this in the future.
Type of Claim: Crime Insurance, specifically Employee Dishonesty
Description of Event: A trusted business development employee of a restoration firm was charged with harassment by several employees and fired by the company. After his termination, the company performed a full-scale internal investigation. In the ensuing investigation, it was also discovered that, over two years, the employee had been falsifying his monthly expense report. He had been obtaining reimbursement from the firm for personal expenses, such as expensive restaurant tabs and air tickets for female companions who accompanied him on business trips.
Over the two years, the employee had taken more than $25,000 from the restoration firm for his dishonest actions. Thankfully, the company carries employee dishonesty coverage on their crime insurance policy to obtain a complete reimbursement for their actions.