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What is Fidelity Insurance?

The Typical Fidelity Insurance policies cover the loss sustained by the employer by reasons of any act of forgery and/or fraud and/or dishonesty of monies and/or goods of the employer on the part of the employee.

Fidelity Insurance Covers:

• Dishonesty,
• Fraud,
• Loss of property,
• Loss from loans or trading

Why do we need Fidelity Insurance?

Companies are exposed to significant financial losses annually, due to crimes that are committed by employees; it is however unfortunate that fraud is on the increase. Combined with the growth in the use of electronic data and asset transfer, the fidelity losses faced by employers increase significantly every year.

Types of Fidelity Guarantees:

Individual Policy: This Policy covers an individual for a stated amount.

Collective Policy: This Policy covers a group of employees. The Insured decides the amount of guarantee required for each individual according to his or her responsibility and position.

Floater Policy: A single amount is shown in the Policy which represents the Insurer’s liability in respect of any one individual and its total liabilities in respect of all the employees guaranteed who are individually named in the schedule.

Typical Conditions for Fidelity Insurance

• The cover granted is against a direct pecuniary loss and not a consequential one;
• The loss should be in respect of moneys or goods of the insured;
• The act should be committed in the course of the duties specified;
• If the employee guaranteed under the policy had left the services of the employer and was re-engaged by him, no liability attaches to the policy, unless the consent of the insurer was obtained.
• No loss that may have been caused by bad accountancy is payable: the loss must be supported by evidence of any of the specified acts of dishonesty.

Feel free to get in touch with AXA Mansard Insurance for guidance and quotes for fidelity insurance and your business.