I recently had a client place family heirlooms with a service. Unfortunately, these were stolen while in the service’s possession. The items were not only valuable from a monetary perspective but also in a sentimental sense. And, it’s highly doubtful they will ever be found.

This experience reminded me once again about employee fidelity coverage and captive insurance. While commercial coverage is available, it’s important to note that insurance companies have several strong arguments at their disposal to deny a claim. In contrast, captive policies can be written to prevent the captive from asserting these claims thereby giving the insured broader coverage in the event of loss.

To get an idea of the costs related to theft, consider these statistics contained in this link from the Association of Certified Fraud Examiners.