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What is Fidelity Insurance?
A business can suffer huge losses due to a breach of trust by its employees. The fidelity guarantee insurance meaning is quite simple. It is an insurance policy designed to protect your business against pecuniary losses due to fraud, theft, or any other dishonest acts committed by employees. E.g., theft of cash, theft of inventory, online banking fraud, etc.
Fidelity Insurance covers losses that took place during the policy's time frame. Fraud committed and found during the coverage period should have the losses covered by the policy.
What are the Types of Fidelity Insurance?
An individual policy only covers the loss due to cheating by an individual employee
A collective fidelity guarantee policy covers the loss due to theft or fraud committed by a group of employees. The cover is provided based on the employees' positions and responsibilities.
A blanket policy covers a group of employees without specifying any names. It is ideal for large businesses.
A floater insurance policy specifies insurance coverage for the entire group and not for individual employees. Every claim reduces the sum insured amount. This has to be reinstated by paying an additional premium. At least five employees are required to get a floater policy.
This policy covers the losses due to cheating by your own employees
This policy will protect the business against claims made by customers for dishonest acts of your employees
Who Needs Fidelity Guarantee Insurance?
A business that handles a lot of cash on a daily basis. E.g., hotels, retail stores, movie theaters
A business that holds a large volume of merchandise products. E.g., shopping malls, antique stores
Any business that has a large clientele base. E.g., event management companies, PR firms, marketing agencies
A business that collects the personal information of its customers. E.g., online stores, banks
What are the Benefits of Fidelity Insurance?
Protection for the business against theft and embezzlement of funds by the employees
Coverage for the loss of business assets such as inventory, documents, and data
Fidelity insurance also covers the loss of customers’ assets due to theft or fraud by the employees
Protects the entire business from the dishonest acts committed by a few employees
Protects the reputation of the business and builds the trust & confidence of its stakeholders
The fidelity guarantee insurance cover can be customized according to the specific requirements of any business
Frequently Asked Questions on Fidelity Insurance UAE
Businesses can suffer huge monetary losses due to theft, fraud, or any such unscrupulous acts committed by their employees. Online fraud has also increased in the wake of rising digital transactions. Fidelity bond insurance offers comprehensive protection to the business against such unforeseen risks.
Fidelity insurance covers theft, fraud, forgery, embezzlement of funds, and other dishonest acts that result in direct financial losses to the business. The policy does not cover (i) indirect losses and (ii) losses from acts with no evidence of dishonesty
A professional indemnity insurance policy protects professionals like doctors, consultants, lawyers, etc., against claims of errors and negligence made by their clients. but fidelity guarantee insurance protects the business against deliberate acts of theft, fraud, and dishonesty by the employees.
The policy period is 12 months. The policy provides cover if the fraud is committed during this period and discovered within 12 months from the date of expiry of the policy.