Fidelity guarantee insurance
Cover for direct financial loss caused to your business by the dishonesty of your own employees, such as fraud, theft or embezzlement discovered during the policy period.
What it covers
Cover varies between insurers and plans. The policy wording is what decides whether a claim is payable, so read it before you buy.
- Direct financial loss from the fraud or dishonesty of an employee in the course of employment
- Theft of money, securities or stock by an employee
- Loss discovered within the period the policy allows after the act, or after the employee leaves
- Audit or investigation costs to establish the amount of the loss, where included
- Named employees, named positions, or the whole workforce, depending on how the policy is written
Key features
- Written on a named-person, named-position or blanket basis for all employees
- Covers direct financial loss only, not consequential loss or reputational harm
- Loss must usually be discovered within a stated period after the act or after the employee leaves
- A police complaint and cooperation in recovery are normal conditions of a claim
- Limits per employee and in the aggregate for the policy period
- A deductible applies to each loss: [DEDUCTIBLE]
How to buy it
Four steps, with an advisor you can reach at any of them.
Tell us about the risk
Tell us how many employees are to be covered, what they handle, and the financial controls you have in place.
Underwriting details
An advisor collects the information insurers need to price the risk, and flags anything missing.
Compare quotes
We ask our partner insurers to quote, and put the cover, conditions and premium side by side.
Proposal & policy
Pick a quote, complete the proposal form and KYC, and the insurer issues the policy.
Fidelity guarantee insurance: FAQs
Is this the same as a commercial crime policy?
A fidelity guarantee policy covers dishonesty by your own employees. A commercial crime policy is wider and can include third-party fraud, computer fraud and social engineering. Which you need depends on how money moves in your business.
Does it cover loss caused by an outsider?
No. Losses caused by people outside the business fall under burglary, money or crime covers, not under fidelity guarantee.
What has to happen before a claim is paid?
You must establish a direct financial loss, usually with an audit, and normally file a police complaint and help the insurer pursue recovery from the employee.
Are contract and temporary staff covered?
Only if the policy says so. Definitions of employee vary, so contract, temporary and outsourced staff must be included expressly if you want them covered.