During this Crime Prevention Month, Beall Brewery Insurance would like to remind craft brewery owners and operators to take steps to protect their businesses from employee theft.
Loss of retail product due to theft and other causes costs US retailers approximately $42 billion annually. Employee theft accounts for 43 percent of lost revenue (about $18 billion). And while the craft brewery industry has a warm and friendly reputation, employee theft hits here, too. Police arrested a former Colorado craft brewery employee for suspected theft of rare beer from the brewery warehouse, totaling more than $15,000.
Strive to protect your craft brewery from employee theft with these simple suggestions.
Follow Established Hiring Practices
- Verify all information on the employee application.
- Contact all personal and professional references listed on an application.
- Consider running a credit check.
Discourage Employee Theft
- Create a written policy clearly outlining employee responsibilities, standards of honesty, and general security procedures and consequences for not following them. All employees should read it, understand it, and sign it as a condition of employment.
- Keep accurate records on cash flow, inventory, equipment, and supplies. Establish a fail-safe system by having these records checked regularly by an employee other than the one who maintains them.
- Limit employee access to keys, the safe, computerized records, and alarm codes.
- Engrave “DO NOT DUPLICATE” on brewery keys.
- Change locks and access codes when an employee leaves employment.
- If you or one of your team discovers employee theft, take action quickly. Contact local law enforcement agency to send a message to your employees: theft will not be tolerated.
- Reward employees for uncovering security problems.
For more than 25 years, Beall Financial and Insurance Services, Inc., has been helping corporations and individuals protect their most important assets. The agency’s client base covers a spectrum of niche businesses, such as craft breweries, that require specialized insurance packages and knowledge. With offices in California and Indiana, Beall Financial and Insurance Services serves clients nationwide.