A company or employer can suffer heavy financial losses because of fraud and dishonest act by its employees. With fidelity guarantee insurance policy, the employers gets cover protection for any direct monetary loss in above stated behavior, when the said employee is still employed with the organization or employer.
Scope of Fidelity Guarantee Insurance
The company has to agree to indemnify the insured in connection to a direct financial loss due to act of dishonesty or fraud under following conditions:
- Deception done on or after the date of policy commencement.
- During employee's continuous service with the insured, and that of the policy or within any of the months before, until the plan expiry.
- In the instance of dismissal, retirement, or death of the employee in twelve calendar months of any of the listed three events, or whichever occurs the first.
Key Aspects of Fidelity Guarantee Policy
- The liability of the company cannot be increased or accumulated if the policy is continued for more than one indemnity period or if the liability of any kind exists with the company in respect to dishonesty or fraud by the employee.
- In this case, the aggregate liability of the organization in any number of indemnity periods, or acts of dishonesty and fraud committed by the employee must not be more than the sum insured, or the sum insured pertaining to any such similar policy, whichever is greater.
- In regards to all claims under such policy, the amount is up to the total sum insured. Pertaining to any employee with the insured employer, the sum insured is against his/her name or as declared in the policy.
- Only one claim can be paid to the company in respect to any one of the fraudulent or dishonest acts by the employee.