Employee Dishonesty Coverage

What You Need to Know

Common dishonest acts covered:

• Theft of money from registers, safes, or deposits
• Embezzlement — systematic diversion of funds over time
• Forgery of checks or financial documents
• Inventory theft — taking food, alcohol, or supplies for personal use
• Fraudulent processing — fake refunds, voids, or discounts to pocket money

This coverage can be purchased as a standalone crime insurance policy or added as an endorsement to your commercial property policy or business owner's policy, with limits typically ranging from $10,000 to $100,000 or more.

Claim requirements typically include proving the loss occurred, identifying the specific dishonest employee, providing documentation, and cooperating with law enforcement investigations.

Why It Matters for Restaurant Owners

Your employees have access to cash registers, safes, inventory, payment card information, and accounting systems — creating numerous opportunities for a dishonest employee to steal from you.

Common employee theft schemes in restaurants:

• Pocketing cash payments without ringing them up in the system
• Processing fraudulent refunds or voids to pocket the difference
• Stealing bottles of expensive alcohol from inventory
• Manipulating timecards to get paid for hours not worked

Many restaurant owners discover these losses too late, often only after a thorough audit reveals the extent of what's been stolen over months or years. Without this coverage, you have no insurance recovery for these losses, and most dishonest employees have no assets worth pursuing through a civil lawsuit.