What is Fidelity Guarantee?

Fidelity Guarantee Insurance is a cover which protects a company against the loss of money and property which you may suffer as a result of a dishonest or fraudulent act by an employee or volunteer.

Why take out Fidelity Guarantee?

It protects a company that believes there may be a risk of a dishonest person taking funds or property and a loss such as this would put the company at risk.

What is covered?

The policy pays the actual financial loss sustained as a result of the dishonesty / fraudulent act of the employee after adjusting any salary, commission, security deposit or any other money standing to their credit. The loss is payable up to the limit specified for the employee. The Policy does not pay more than one claim in respect of liability/loss arising out of an individual employee's acts.

What the policy does not cover

There are a few major exclusion that come under the policy, which are:

• Loss arising out of suppression of fact, affecting the risk at the time of effecting the policy
• Change in the circumstances or conditions of the said employment, without the consent of the company
• More than one claim in respect of any one employee
• Loss arising outside the country
• Loss due to non-observance or relaxation of system of checks and precautions
• Loss by an act committed subsequent to an earlier act of dishonesty / fraud that had come to your notice
• Loss discovered more than 12 months after the termination, either of the guarantee or of the service of employee concerned
• Losses such as stock taking shortages, trading losses, are not caused by fraud or dishonesty