This article originally appeared in the March 23, 2012, issue of
The Lawyers Weekly published by LexisNexis Canada Inc.
The economic downturn of the past few years has forced many
businesses to face a harsh reality: Some of their employees are
dishonest. This unfortunate fact has focused fresh attention on
fidelity insurance as a way to effectively manage the risk of
inhouse fraud.
Fidelity insurance provides coverage for losses resulting from
fraud, theft or other crimes perpetrated by employees, whether they
are acting alone or in collusion with others.
Since the economic downturn in 2008, many of us who practice in
the area of fidelity insurance have noticed an increase in claims
activity. Whether this means there is more fraud today than during
more prosperous economic times is open for debate. There are two
schools of thought here: In difficult times, employees are more
likely to engage in dishonest conduct at the expense of their
employer to make ends meet;
