Get Started

Does employee-theft insurance answer the question about client payment fraud?

The label alone does not show whether a specific event is covered. Ask the insurer whether the proposed form distinguishes employee theft, outside impersonation, and redirected client payments.[1][3]

Describe who can initiate and approve transfers, what controls exist, and whether client funds pass through company accounts.[1]

Review the definitions and exclusions in the quote; this guide does not assert that client-fund or social-engineering losses are covered.[1][3]

Read the Finance and Accounting Insurance Buying Guide

Sources and Further Reading

  1. Small Business Insurance — National Association of Insurance Commissioners. Small-business coverage categories, exclusions, property interests.

    General coverage purposes and exclusions, not policy wording.

  2. Tax Security 2.0: The Taxes-Security-Together Checklist — Internal Revenue Service. Tax-professional security plan; requirement applies to professional tax preparers.

    Tax-preparer security planning with narrow legal scope.

  3. Cyber Insurance — Federal Trade Commission (content developed with NAIC and federal partners). First-party and third-party cyber examples; not policy wording.

    First/third-party examples to turn into quote questions, not promises.

  4. Launch your business — Get business insurance — U.S. Small Business Administration. Business insurance overview, common types and buying steps; broad federal mandate statement not relied on.
  5. DWC employer information — California Department of Industrial Relations, Division of Workers’ Compensation. Employer requirement and out-of-state employer note.
  6. DWC FAQs for employers — California Department of Industrial Relations, Division of Workers’ Compensation. Employee and owner distinctions in employer FAQ.
  7. Commercial Insurance Guide — California Department of Insurance. Revised June 14, 2024: buying cover; property/time-element; inland marine; equipment breakdown; GL; workers compensation; rating.
  8. Cybersecurity for Small Business — Federal Trade Commission. Supplier risk assessment and vendor-breach response.

Spot, a product of Tools for Enlightenment, publishes this guide and works in the commercial insurance market. This is general buyer education. Policy wording and applicable state rules determine terms for a particular business.

Updated 2026-09-28. Editorial Policy

Get Help With Insurance Buying and Renewals.

Get help buying coverage and managing renewals, with less paperwork for your team. Start with a free consultation.

Talk to Spot