Fidelity Guarantee

Employees are often considered as the driving force of a company.
What happens if they are dishonest and fraudulent?

What is Fidelity Guarantee Insurance?

Fidelity Guarantee is an insurance coverage designed to protect employers against any financial loss directly from dishonesty or fraud from employees. Such acts include forgery, embezzlement, larceny or fraudulent conversion.

What does Fidelity Guarantee Insurance cover?

Fidelity guarantee will reimburse a loss from the following circumstances:

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

Acts from employees for personal financial gain are considered improper. Indemnification is also provided for theft of property by computer fraud and theft of funds from a financial institution. Fidelity cases often end up in lawsuits. This means there are third parties involved and costs such as defence, judgments and settlements are also accommodated based on the terms of contract.

Is Fidelity Guarantee Insurance important?

Fraud and crime within organizations are becoming more and more prevalent as studies have warned companies that significant financial losses can be incurred without adequate protection. The rise in technological equipment, electronic data and asset transfers further amplifies the exposure. Companies where employees have constant access to cash, stocks and other assets are considered higher in risk, especially with the increase in computer crime in the world today. Hence, it is pertinent to utilize fidelity guarantee as a means to manage employees' risk. Other ways to minimize the risk include:

  • Organize an internal audit system for all financial records.
  • Have an independent accountant perform a full audit annually.
  • Make sure that bank accounts are reconciled by someone other than those who handle deposits and withdrawals.
  • Have countersignature procedures for checks.
  • Make sure there is joint handling of any securities.
  • Have strict security procedures for all computer operations.
  • Establish formal management procedures.
  • Initiate a formal employment policy for hiring new employees.

Who needs Fidelity Guarantee insurance?

Any organization who does not trust 100% of the employees in terms of stealing funds or property should strongly consider fidelity guarantee. You do not want to put the company’s financial stability in jeopardy.
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How much does a Fidelity Guarantee policy cost?

The cost can vary from company to company but the key indicators are based on the following:

  • Coverage 
  • Number of employees
  • Track record 
  • Company industry
  • Security measures

Why CHAZ?

At CHAZ, not only do we broker an offer in the best interst of the client, we can also guide you through the neccessary steps in order to prevent the chances of a claim occuring. However, should a claim occur, we also have a team that can guide you through the processes so your mind can be at peace.

Important Disclosure

The content provided is for informational and educational purposes only. The coverage written may not be applicable to all situations and policies. Terms, conditions and qualifications are also subject to circumstance and supplementary material. For more information, please contact us via the enquiry form below..

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