Fidelity guarantee insurance is just that – a guarantee by the insurance company to an employer for the loss of money or property as a result of fraud, theft or dishonest employee. It guarantees that the employer will have insurance coverage for any financial loss arising out of a situation with an employee.
Means for Fidelity Guarantee Insurance
Those who are exposed to significant yearly financial losses, possibly because of fraud from employees, should consider fidelity guarantee insurance. Companies that handle money and have a lot of employees who are managing transitions should consider fidelity guarantee insurance. It is typically purchased by those where employees are more likely to cause a financial loss to the business because of regular exposure to cash, stocks and other finances. Additionally, the growing use of computers and electronics also makes companies susceptible to fraud, making it even more necessary to seek fidelity guarantee insurance.
Fidelity Guarantee Insurance Coverage
A fidelity guarantee insurance policy will typically cover any losses of an employer due to an act of fraud, dishonesty, stolen money or goods or forgery of an employee. For example, if an employee forges your signature on a check and your business sustains financial losses, then you could claim the loss with your fidelity guarantee insurance. The loss or damage must have occurred during the employee’s time of employment in order for the fidelity guarantee insurance policy to be valid. Coverage can be purchased for a single employee or for a group of employees.
Types of Fidelity Guarantee Insurance
There are a few basic types of fidelity guarantee insurance. An individual policy will cover an individual employee for a specific amount. A collective policy will cover a group of employees with various amounts for each employee depending on their position and responsibilities. A floater policy is a single amount based on one employee who is named in the policy. A blanket policy will cover unnamed employees in a categorized group, such as clerks or employees who handle cash.
Things to Consider in Fidelity Guarantee Insurance
When looking at fidelity guarantee business insurance plans, it is important to consider some key factors to protect yourself as an employer. You should clearly determine the roles of your employees, such as assistant or manager, and yourself as owner or director, to ensure the level of superiority. You may also consider the record and reputation of the employee that will be covered in your fidelity guarantee insurance policy. Additionally, you will need provide history and general supervision of the employee when applying for fidelity guarantee insurance.
Making a Fidelity Guarantee Insurance Claim
Once you have purchased a fidelity guarantee insurance claim as an employer, you should understand the steps to take when making a claim. First, you should take immediate disciplinary action against the suspected employee. Then, you must document the act committed by the particular employee. Lastly, you must submit the proof of loss to the insurance company. Make sure to include the specific amount of the loss and the entire employee’s name.