Dishonesty and Embezzlement

Business dealings are based on partnerships, and those partnerships are rooted in a certain amount of faith and trust in the ones we work with. Employees, coworkers and partners all have a duty to each other to be transparent and honest in matters that relate to the business.

Unfortunately, this is not always the case. When dishonesty pervades a company’s infrastructure, the results can be devastating and cause severe loss of income and opportunity. Legally, lost opportunity refers to a situation where a person has conclusive proof that that a great deal of income was lost based on an event that was beyond their control.

If you experienced loss of opportunity in your business because of another person’s negligent or deceitful actions, you may be able to file a claim through your insurance provider to seek damages and compensation for the lost income. However, insurance companies can delay, decrease, or deny payment of these claims for any number of reasons.

If your insurance claim has been denied, you may still have a valid claim for lost opportunity. Seeking an experienced and knowledgeable Minnesota insurance law firm can be your best recourse to ensure that the funds you were owed will not put your business in financial straits.

Arguello, Hope & Associates and Sauro & Bergstrom are the allies that can help guide you through the litigation process with confidence and compassion, which is why we will always fight for the MAXIMUM amount of compensation due to the victims of lost opportunity.

To find out how we can help, simply fill out the “Free Case Evaluation” form located at the top of the page, on the left side. It is 100% FREE and there is never any obligation to proceed— the details of your case always remain confidential.

How do Dishonesty and Embezzlement Affect Lost Opportunity?

An employee or a business partner has the potential to do serious harm to a company’s bank account. If they want, they can steal, or embezzle money from the company, limiting the income for the company but increasing their own. Not only is this illegal, but it is dishonest and it causes the business to have a claim of lost opportunity for the income they should have gained.

An example of this could be seen in a company where a staff member steals money from the account:

  • The company needs $100,000 to purchase their commodity, but due to that staff member’s embezzlement and dishonest actions, the company does not have the funds to purchase the commodity they need to create their product.
  • In turn, the company must wait to create and ship their product until they have the funds to purchase the source material. Thus, the company loses income because of the staff member’s actions, which has created a lost opportunity for the company.

With a valid claim of lost opportunity, it is difficult to imagine an insurance company denying payment, but it is a common occurrence. When this happens, it is vital to consult with a skilled law firm so their in-depth knowledge of insurance litigation cases can bring justice to the negligent party and fight for your rights.

Calculating Loss of Business Income

In order to receive a fair assessment of the compensation that is due to a business, insurance companies use a formula based on past months income and expenses to estimate the amount. To get an estimate of this amount, use the following steps:

  • Add estimated net income for year after date of policy activation
  • Add estimated pre-tax expenses for a year of operations
  • Subtract cost of ordinary payroll employees that will not be working during restoration
  • Calculate the maximum number of months you will require to resume operations
  • Multiply by 1 for a year, .75 for 9 months, .5 for 6 months, and so on.

These steps do not cover the amount of lost opportunity income, or the revenue that would have been earned had the dishonesty and embezzlement of company funds not taken place, although employee expenses and restoration expenses during this period would be covered.

Contacting Our Minnesota Insurance Attorneys

Insurance claimants across the United States have put their trust in Arguello, Hope & Associates to recover the compensation that is due to them from lost opportunity cases caused by dishonesty and embezzlement.

Our legal team has compassion for individuals and families whose claims have been unfairly denied by their insurance company, and our goal is to fight for your justice in a court of law. In addition to our offices in Houston, TX, Birmingham, AL, Phoenix, AZ and Joplin, MO, our team handles claims in Minnesota and the following areas:

  • Brainerd
  • Eden Prairie
  • Hibbing
  • Minneapolis
  • Roseville
  • Saint Cloud
  • …and most other surrounding towns and suburbs of these areas.

Don’t delay in contacting Arguello, Hope & Associates for help in filing your claim for lost opportunity, or if the insurance company has denied or delayed payment of the funds you deserve as outlined in your policy. Call us at 651-356-6006 or (888) CLAIM-68 today, or fill out the “Free Case Evaluation” form located at the top of this page.