Small businesses like pharmacies don’t always appreciate the dangers of staff fraud, according to Guild Insurance.

Professional Risk & Development Manager Leanne Toby told the Pharmacy Guild of Australia’s national convention in Sydney such crimes are increasingly common and pharmacists must improve processes to avoid potentially heavy financial losses.

Ms Toby told insuranceNEWS.com.au a lack of awareness in small businesses is at the heart of the problem.

“People with small businesses think there is a strong culture of trust and they don’t need to worry. They think this is the domain of big business, but it isn’t.”

She says insurance is important, but other strategies must be put in place first.

“It is about separation and segregation of duties and not having one person controlling a whole process.

“Employee dishonesty cover should be for people with basic controls in place– it should be cover for the completely unexpected.

“We don’t want to say that the best thing is rush out and get insurance without getting your house in order first. It would be like getting home and contents cover without having a front door.”

Guild Insurance was formed in 1963 to cater specifically for pharmacies, but now provides broader general insurance products and services, particularly in the healthcare sector.