01 / The meaning
What it means.
Employee dishonesty cover commonly focuses on defined financial or property loss suffered by the insured business. It should not be confused with insurance against every mistake by staff, every customer dispute or all lost future income. The person’s employment status, the nature of the act and how the loss is discovered can affect which provision is relevant.
An unexplained accounting difference is evidence to investigate, not proof that a named employee acted dishonestly. Preserve transaction records and involve appropriate advisers before making accusations. Dual approval, supplier verification and access controls can reduce opportunities for loss and may also be relevant to underwriting. A policy can distinguish employee theft from an external impersonation scam, even when both result in money leaving the same bank account.
02 / Put it in context
A practical example.
Hypothetical example: a café owner notices refunds repeatedly paid to one unfamiliar card. An investigation establishes what happened; any claim depends on the evidence, insured employee definition, discovery provisions and available crime cover.
This example illustrates the term. It does not predict a claim outcome.
03 / Read the detail
What to check.
- Check who counts as an employee, including temporary staff.
- Identify discovery deadlines and any prior-loss reporting requirements.
- Distinguish direct stolen funds from consequential trading losses.
04 / Start a useful conversation
A question for your broker.
Does the alleged conduct fit the policy’s employee dishonesty definition and loss requirement?
05 / Connect the terms
Keep the meaning in context.
06 / Apply it to your business
Related insurance guides.
Further reading
Read the source guidance alongside the relevant policy wording.
General information only. This does not take into account your objectives, financial situation or needs. Before acting, consider whether the information is appropriate for you. Cover is subject to insurer acceptance and the policy terms, conditions, limits and exclusions. Read the Financial Services Guide and the relevant PDS (where applicable) and/or policy wording before deciding.
Let’s start with your business
A clearer conversation
about your insurance.
Tell us what you do, what has changed and what you need to understand.