What is Fidelity Insurance?

Why do you need a Fidelity Insurance cover?

1
Indian retails lost almost ₹9,300 crore to shoplifting and theft in 2013 alone. (1)
2
At least 68% of businesses have faced some kind of incident of theft or fraud in India. (2)
3
Businesses often lose 5% of their annual revenue just to employee fraud. (3)

What does a Fidelity Insurance cover?

Getting a Fidelity Insurance, will protect your business in case of...

Theft

Theft

This means that the policy will cover your business against any theft committed by employees of any of your business's assets. For example, if a worker at a construction site steals some tools and then sells them online.

Embezzlement

Embezzlement

The policy will cover your business in case some employee uses company funds for a different purpose than it was meant for. For example, if someone creates a fake bill or receipt for some activity, but uses the money paid for personal expenses.

Forgery

Forgery

This insurance will also cover you if an employee has committed acts of forgery or alteration. For example, if someone who works for you forges your signature on a check or document.

Theft from Customers/Clients

Theft from Customers/Clients

You will be covered if any of your employees are found to have stolen money or property from a customer or client. For example, if an employee of a property management company collects extra rent from tenants, but pockets the extra cash.

What’s not covered?

Since we believe in transparency, here are some situations that won’t be covered.

If the financial loss arises outside India.

More than one claim made against a particular employee after you have discovered their previous fraud or dishonesty. 

Consequential or indirect losses or damages (like reduced profits, loss of some opportunity, or an interruption to your business).

Any losses discovered more than 12 months after the termination of the employee.

In cases where you (the employer) were not observing the agreed-upon system of checks and precautions.

Any losses due to things like stock-taking shortages, trading losses, that were not caused by fraud or dishonesty.

What are the advantages of having a Fidelity Insurance?

You’ll be financially protected against any theft of funds and other dishonest acts committed by your employees.
It protects your company from a few bad apples who might affect the entire business and even other employees.
In case you face the loss of a customer’s property due to an employee’s dishonesty, your business will be covered.
Even if you end up losing any of your business assets such as property, or stock certificates, you’ll be covered.
You can customize your policy’s coverage based on the specific needs of your business.

What are the types of Fidelity Insurance?

Types of Businesses that need Fidelity Insurance

Any organization that employs people can never ensure that all of them will be completely honest all the time. That’s why getting a fidelity insurance might be a good idea for your business, especially if: 

It deals with a lot of petty cash.

This can include restaurants and cafes as well as many stores or theatres.

Your business has a lot of merchandise or products.

Retail businesses like shops and boutiques are a few examples.

You deal with a lot of vendors, clients, and customers.

For example event planners, marketing firms or PR agencies.

It collects any personal information from customers.

Like advertisers or even online stores.

How much will a Fidelity Insurance Cost?

How to choose the right Fidelity Insurance policy?

  • Choose the right type of plan – Consider the nature of your business and the number of employees and their responsibilities and pick the type of plan that will work best for you and your business.
  • Get the right coverage – Make sure that the insurance policy is and see if it gives you the best coverage for all your employees and any risks to your business.
  • Compare different policies – Look at many different fidelity insurance policies and find the one that will work best for your business. Remember, sometimes a policy with the lowest premium might not be the best option because it might not give you the right coverage, so compare the features and premiums of different policies to find one at an affordable price. 
  • Pick the right sum insured When you’re choosing a fidelity policy, try to find one that allows you to customize your sum insured based on the nature of your business and the number and positions of your employees. 
  • An easy claims process – One of the most important parts of any insurance policy is the claims, so look for a company that has an easy claims process, as it can save you and your business a lot of hassle after an incident.
  • Extra service benefits – Lots of insurance companies also offer a lot of extras benefits, such as 24X7 customer assistance, easy-to-use mobile apps, and more.   

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FAQs about Fidelity Insurance in India