Fidelity Guarantee Insurance
This insurance policy protects the employer from risks presented
by any of his employees such as fraud, dishonesty, embezzlement
during
the course of employment. In industries where secrecy and confidentiality
of operations is vital for a company's success, this policy will
ensure the concealment of business procedures from other competitors
who may
be successful in poaching their rivals' employees. |
What can be Insured
This insurance policy seeks to indemnify the employer from direct
financial losses sustained due to acts of fraud or dishonesty of
an employee in the course of employment.
Its need originates from the relationship between the employer and
his employee OR from a fiduciary relationship such as
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-
Individual policy
Provides cover against
one specific named employee.
-
Collective policy
Provides cover against a specific
group of named employees up to an agreed amount against each person.
-
Floater
policy
Provides cover against a number of employees without specifying
any names and amounts against each person. Only the total guarantee
is stated.
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Risks covered
This insurance policy insures the employer from risks faced owing
to his employees such as
- Fraud or obtaining advantage through unfair
means.
- Dishonesty or breach of trust.
- Forgery or illegal
alteration.
- Embezzlement or misappropriation of money or goods.
- Larceny
or dishonest means of possession.
- Default or failure to perform
specific duties.
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Exclusions
This insurance policy will not pay compensation based on any claims
arising from
- Losses not discovered within the period of insurance.
- Losses
discovered after 6 months of expiry/ cancellation of the policy.
- Losses
sustained beyond the retroactive period of 2 years from the date
of discovery.
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