Burglary    

Burglary is defined by the insurance policy as the unlawful taking of property from inside the premises by a person unlawfully entering or leaving the premises as evidenced by marks of forcible entry or exit.

The first step in developing a risk control program is to evaluate your protection needs. Your needs are determined by:
• What you are trying to protect
• How susceptible the neighborhood is to burglaries
• What balance between physical security and alarms systems is most effective for your 
  situation

Protecting high-value, easily transportable goods in a high crime-rate area will necessitate a different approach than that of a low crime-rate area, or involving difficult to transport goods.

Local alarms have little or no value in high crime areas. By the time someone calls the police, the burglars are usually finished with their crime. Alarms that are monitored by a central station alarm service company or the local police department provide law enforcement a better opportunity to respond in time. Even with the monitored alarm, it is important to take measures that will delay the unlawful entry by using substantial locks, doors, impact resistant glass, gates, or grills over the windows. If the burglars can gain quick entry and make off with valuables within 15 minutes, the police will have little chance of stopping or apprehending them.

Since the majority of break-ins take place through doors and first floor windows, this may be a good place to focus your efforts. For more information on burglary risk control techniques, including a Crime Prevention Checklist, check with your FCCI Loss Control Representative and look in the Crime section of the Blueprint for Safety Online Risk Control Manual.

Safe Burglary   

Safe burglary is defined as the unlawful taking of property from a locked safe or vault by a person unlawfully entering it, as evidenced by marks of forcible entry upon its exterior. It also includes the unlawful taking of the safe or vault from inside the premises. It is important to understand that under a policy that specifically covers safe burglary and does not provide broader theft coverage, there would be no coverage for property taken from an unlocked safe or vault. 

Because safes are intended to protect valuables, the demand for the items in the safes is typically high, making them a prime target. Given this high demand, you should evaluate the level of protection you need in terms of:
• How susceptible the neighborhood is to burglaries
• What balance between physical security and alarms systems is most effective for your
  situation

As these factors increase so does the level of protection needed. 

For more information on burglary risk control techniques, check with your FCCI Loss Control Representative and look in the Crime section of the Blueprint for Safety Online Risk Control Manual.

Robbery 

Robbery is defined as the unlawful taking of the property from another by causing or threatening to cause harm to that person or by committing an obviously unlawful act that is witnessed by that person. 

Cash is the number one target of robbers. Other high demand items include precious jewels and drugs. Given the attractive nature of items targeted by robbers, the required level of protection is primarily a function of business location and values on hand. The factors for consideration when looking at business location include neighborhood crime rate, ease of access to and from your business, visibility, public traffic and business hours. 

Robbery Risk Control   

• Minimize cash on hand by increasing frequency of bank deposits 
• Stagger timing of bank deposits to avoid developing a pattern
• Avoid using bank night depository drops if possible or send two employees to make them
• When values are high, consider using an armored car service to transport money,
  securities, jewelry, and precious metals

For more information on robbery risk control techniques, check with your FCCI Loss Control Representative and look in the Crime section of the Blueprint for Safety Online Risk Control Manual.

Employee Dishonesty   

The most significant crime exposure that most businesses face involves employee theft (also known as employee dishonesty). The amount of employee theft may range from stolen office supplies to large-scale theft of inventory by an employee acting with an outside party. Embezzlement is the principle cause of employee dishonesty losses. Embezzlement is theft by a person in a position of trust. 

Employee theft has some unique characteristics that include:
• Extending for many years before being noticed
• Involving property instead of money
• Involving a trusted and long-term employee
• Involving employees who rarely take time off
• Involving people with money problems created by gambling or drugs
• Involving employees and outside people in collusion

Employee Dishonesty Risk Control

Employee theft can be prevented by a good system of internal controls that minimize the opportunities for employee dishonesty. Starting with the hiring process, there are a number of easily achievable risk management techniques that can be undertaken to protect your business, property and people from employee theft losses. 

Internal Controls

• Develop a thorough hiring, screening, and employee selection procedure. 
• Strive to hire and retain individuals truly interested in the company’s future. 
• Require countersignatures on all checks.
• Reconcile bank accounts monthly.

Internal Audits

• Develop written audit procedures.
• Employ a full-time staff auditor.
• Perform audits annually. 
• Include inventory in the audit, as it is a high theft target.

Outside Audits

• Financial records should be audited by a certified public accountant at least annually. 
• Audits should be unannounced and at irregular intervals.
• Audits should include all interests and locations.

Supervision 

• Require all payments be made in a non-cash form. 
• Verify countersignatures.
• Check and reconcile petty cash periodically. 
• Clear cash registers frequently throughout the day. 

For more information on employee dishonesty risk control techniques, check with your FCCI Loss Control Representative and look in the Crime section of the Blueprint for Safety Online Risk Control Manual.

This manual is advisory only and does not attempt to list all potential hazards or identify all possible remedial actions. You are responsible for the safety of your premises, operations, and products. FCCI Insurance Group and its affiliates and subsidiaries shall not be liable for any loss, injury, death, damage, or expense arising from the use of this manual.