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minimize the impact of employee crime

If funds go missing, what recourse do you have? In general, employee dishonesty (embezzlement) coverage applies to funds stolen by:

  • An elected officer, trustee, or director
  • Any employee
  • Any volunteer

You can minimize your exposure to embezzlement. We recommend that you:

  • Require two signatures on checks
  • Never pre-sign checks
  • Split responsibilities so that whoever is authorized to withdraw funds is not also the person reconciling monthly statements

The insurance company has placed required conditions on the policy for insureds to qualify for a lower policy retention (deductible). Required Conditions means the Insured Organizations have utilized, prior to the loss sustained, a professional, third party accounting service to provide the following controls with respect to any Chapter, Local House Corporation or Local Foundation, which will be verified at the time of loss:

  • All outgoing electronic payments are subject to segregation of duties between initiation, authorization and release, such that no one individual can control the entire process without oversight by another individual;
  • Accounts payable duties are segregated such that no one person can complete a transaction from beginning to end independently under their own authority;
  • Monthly bank reconciliation is conducted on all Chapter, Local House Corporation or Local Foundation approved bank accounts by a person that is not authorized to also handle deposits, sign checks or make electronic payments; and
  • At least once a month, bank and credit and purchase card accounts are reconciled by a board member or employee other than the board member or employee who is an authorized signatory for such accounts;
  • New vendors or any change to existing vendors are approved by a House Corporation board member.

Click here to see claims examples involving embezzlement.

Independent contractors are excluded. For example, an accounting firm would not be covered under your plan.

Your organization’s crime limits are specific to your location. You can find the details in your Insurance Overview.

contact us

We can help you understand the terms of your coverage for crime, embezzlement, or other concerns you may have.


Have more questions? Our FAQ covers general liability, employee/employer questions, and much more.

What are the risk management considerations of hiring members as employees?
We do not support our clients hiring volunteers as employees. The main concern is with workers’ compensation coverage.
What happens when a liability incident occurs?
Any type of incident should be reported immediately to MJ Insurance. Officers and members will be interviewed by the insurance company to uncover the details of the incident.
Who is covered under the insurance program?
The policy defines an insured as the Fraternity/Sorority, Foundation, House Corporations, Chapters, Colonies and Alumnae Associations.
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