Fidelity Guarantee Insurance

 As an employer, would you not expect the employees of your company to be sincere? Surely, anyone will. Forget about being sincere, what if an employee is unfaithful? What if an employee does forgery or steals your company’s laptop? Fraudulent activity and dishonesty are common in businesses. Buy insurance and relax. You need Fidelity Guarantee Insurance to get compensation if there is a loss because of such an activity. This type of insurance is basically an agreement of insurance and guarantee leading innovative companies offer.

Fidelity Guarantee Insurance protects employers from financial losses, resulting from employees forgery, fraud, or direct theft by employees. Protection offered by Fidelity Guarantee Insurance can be designed to cover every employee of the company or only an individual worker or position within the organization.

What Does Fidelity Insurance Cover?

According to this insurance policy, the insurance company covers the insured company against a financial loss (only as long as is direct) because of acts of fraud/ dishonesty conducted by workers, under the conditions mentioned below:

1.  You’ll be entitled to the retroactive coverage date. That is to say; the coverage commences on the day the insurance policy is purchased.

2.  Coverage will be provided during unobstructed service with the firm and its discovery during the policy period. This is also valid within a year/ twelve calendar months of the policy expiration.

3.  In case of passing, termination, or retirement of the worker within the twelve calendar months of such an event, whichever event occurs earlier.

There following are three types of Fidelity Insurance:

1. Individual Policy

This policy covers an individual worker of an organization.

2. Collective Policy:

This policy covers a group of employees of a company.

3. Floating Policy:

This covers property that can be easily moved and offers additional coverage that normal insurance policies don’t. This can cover product from jewelry to expensive projector. Often, homeowners insurance will not provide full coverage for some items. Including a Floater Insurance Policy guarantees the homeowner that the total compensation will be given in the event of robbery, loss, or damage. It usually covers a single individual item. So, if there are many items for which you want full coverage, you’ll require a Floater Policy for every item.

What the Fidelity Guarantee Insurance does not cover?

The Fidelity Guarantee Insurance does not cover any losses if:

1.  Legal liability of any kind

2. Any change in the circumstances or of the said employment without the consent of the business

3.  Losses occurring outside India

4. Losses are arising because of non-observance or system of checks and precautions.

5. Losses arising because of an act committed following an earlier act of dishonesty/fraud and that that the insured/ Insured’s representative learns

6. Discovered over 12 months after terminating the employee

7. Act by an employee after discovering his previous fraud or dishonesty

8. Inventory losses

9. Any loss resulting from trading in securities

10. Consequential losses of any

11. Some insurance companies cover the risks of terrorism with an additional premium.