All About Fidelity Guarantee Insurance

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.

Consequential loss insurance Policy

If you own a business, consequential loss insurance may be an insurance option you should consider to protect losses that are not covered under standard business insurance. Consequential loss insurance is a type of business insurance related to losses to business property or equipment.

Definition of Consequential Loss Insurance

Consequential loss insurance would cover business losses that arise from damage to an insured property. Consequential loss insurance policies diminish indirect risks that arise from a situation and are typically offered in combination with regular business or property insurance. Consequential loss is considered an indirect loss, as opposed to a loss from a natural disaster or accident.

Benefits of Consequential Loss Insurance

There are several benefits to having a consequential loss insurance policy. Normal insurance policies generally cover the cost of repairing or replacing damaged property, but consequential loss insurance will cover additional financial losses that your business may incur as a result of such damages. Consequential loss insurance is a solution to cover your profits and business interruptions. It can be purchased in conjunction with a standard business policy at a much smaller cost than the effects your business could endure.

Coverage of Consequential Loss Insurance

Consequential loss insurance is not intended to cover actual property damage from storms, fire or theft. It is designed to cover the financial losses due to interruption of business while a damaged property is being repaired or replaced. Consequential loss insurance will cover profits lost due the interruption of business. It can also cover increased cost of working, as such related to the working facility being unusable momentarily during repairs. Salary and wages can also be covered under consequential loss insurance.

Determining Your Consequential Loss Insurance Needs

The amount you will need to ensure under your consequential loss insurance policy depends on the gross profit of a specific time frame. Most insurance companies will determine the time frame based on the maximum time it would take to get the business back to normal operations after damages occur. The annual gross profit should equal a portion of the selected time period and should represent the net trading profit plus any standing charges. The sum insured should be representative of the difference in turnover and total variable and standing charges.

Exclusions of Consequential Loss Insurance

Consequential loss insurance is designed to cover financial losses in the event of a business property needing to be repaired or rebuilt because of a named peril. It does not cover business interruptions unrelated to such events named in your business insurance policy. Typical named perils are storm, fire, theft and vandalism. Most consequential loss insurance policies will not cover financial losses of unnamed perils, such as war, invasion, flood or other events.

Consequential loss insurance is a smart choice for businesses who are already purchasing property or business insurance. It will help protect financial profit losses and give you peace of mind while rebuilding or repairing your business property.

Consequential loss insurance Policy

If you own a business, consequential loss insurance may be an insurance option you should consider to protect losses that are not covered under standard business insurance. Consequential loss insurance is a type of business insurance related to losses to business property or equipment.

Definition of Consequential Loss Insurance

Consequential loss insurance would cover business losses that arise from damage to an insured property. Consequential loss insurance policies diminish indirect risks that arise from a situation and are typically offered in combination with regular business or property insurance. Consequential loss is considered an indirect loss, as opposed to a loss from a natural disaster or accident.

Benefits of Consequential Loss Insurance

There are several benefits to having a consequential loss insurance policy. Normal insurance policies generally cover the cost of repairing or replacing damaged property, but consequential loss insurance will cover additional financial losses that your business may incur as a result of such damages. Consequential loss insurance is a solution to cover your profits and business interruptions. It can be purchased in conjunction with a standard business policy at a much smaller cost than the effects your business could endure.

Coverage of Consequential Loss Insurance

Consequential loss insurance is not intended to cover actual property damage from storms, fire or theft. It is designed to cover the financial losses due to interruption of business while a damaged property is being repaired or replaced. Consequential loss insurance will cover profits lost due the interruption of business. It can also cover increased cost of working, as such related to the working facility being unusable momentarily during repairs. Salary and wages can also be covered under consequential loss insurance.

Determining Your Consequential Loss Insurance Needs

The amount you will need to ensure under your consequential loss insurance policy depends on the gross profit of a specific time frame. Most insurance companies will determine the time frame based on the maximum time it would take to get the business back to normal operations after damages occur. The annual gross profit should equal a portion of the selected time period and should represent the net trading profit plus any standing charges. The sum insured should be representative of the difference in turnover and total variable and standing charges.

Exclusions of Consequential Loss Insurance

Consequential loss insurance is designed to cover financial losses in the event of a business property needing to be repaired or rebuilt because of a named peril. It does not cover business interruptions unrelated to such events named in your business insurance policy. Typical named perils are storm, fire, theft and vandalism. Most consequential loss insurance policies will not cover financial losses of unnamed perils, such as war, invasion, flood or other events.

Consequential loss insurance is a smart choice for businesses who are already purchasing property or business insurance. It will help protect financial profit losses and give you peace of mind while rebuilding or repairing your business property.