FIDELITY GUARANTEE INSURANCE

WHAT IS FIDELITY GUARANTEE INSURANCE

Fidelity bond insurance is a type of insurance plan designed to safeguard an organisation from losses caused due to fraudulent activities by specified individuals or group of individuals.This is a form of business insurance which generally covers the dishonest activities performed by its employees.

TYPES OF FIDELITY INSURANCE

This plan can be purchased under the following heads:

• 1st party coverage: Losses incurred by the business due to wrongful activities by its employees
• 3rd party coverage: Claims made by the customers/clients when they incur losses due to deceitful activities by the business
• Blanket bond: Covers all the employees of the organisation
• Floater policy: Just single amount is depicted in this policy. It is based on each individual to be insured. Minimum 5 employees must be enrolled in this plan

WHAT FIDELITY INSURANCE COVERS?

Fidelity insurance not only covers the employees against the fraudulent activities but also protects the customers who are at the receiving end of such acts. This insurance covers the following areas:

• Forgery: 
• Asset theft
• Identity theft
• Embezzlement
• Theft by customers/clients

EXCLUSIONS

Not all cases and situations are covered by fidelity bond insurance. There are certain exclusions for which you are not entitled to any protection. Some of these cases are:

• Physical injury
• Breach of contract
• Errors & Omissions
• Losses incurred before the policy commenced
• If the loss is not within the retrospective date
• Employee misdeeds which did not cause any monetary loss
• Willful negligence from the employer end which led to the forgery/monetary loss