Fidelity Insurance What Is It

Fidelity Insurance What Is It: Protecting Your Business from Internal Threats

As a business owner, you work hard to build and maintain the reputation of your company. However, even with the best intentions and policies in place, internal threats can arise. Employee theft, fraud, and embezzlement are common occurrences in the business world, and can cause significant financial loss and damage to the reputation of your business.

Fidelity Insurance, also known as Employee Dishonesty Insurance, is a type of insurance that protects your business from losses caused by dishonest acts committed by employees. In this article, we will explore what Fidelity Insurance is, how it works, and why it is important for your business.

What is Fidelity Insurance?

Fidelity Insurance is a type of insurance that protects your business from losses caused by dishonest acts committed by employees. This can include theft, fraud, forgery, embezzlement, or any other illegal act committed by an employee that results in financial loss for the company.

Fidelity Insurance is typically an add-on to a standard business insurance policy, such as a commercial property insurance or a general liability insurance. It is important to note that Fidelity Insurance only covers losses caused by employees, and does not cover losses caused by outside parties such as customers, vendors, or contractors.

How does Fidelity Insurance work?

Fidelity Insurance works by providing coverage for losses caused by dishonest acts committed by employees. The coverage amount is determined by the policy limit, which can be customized based on the needs of your business.

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In order to make a claim under a Fidelity Insurance policy, the employer must provide proof of the dishonest act committed by the employee. This can include police reports, financial statements, or other documentation that shows the loss suffered by the company.

Once the claim is approved, the insurance company will provide compensation for the losses incurred, up to the policy limit. It is important to note that Fidelity Insurance policies typically have a deductible, which is the amount the employer must pay out of pocket before the insurance coverage kicks in.

Why is Fidelity Insurance important for your business?

Fidelity Insurance is important for your business because it protects you from financial losses caused by dishonest acts committed by employees. Even with the best intentions and policies in place, internal threats can arise, and the costs can be significant.

According to the Association of Certified Fraud Examiners, the median loss to organizations due to occupational fraud is $140,000. This amount can be devastating for small businesses, and can even lead to bankruptcy in some cases.

Having Fidelity Insurance in place can provide peace of mind and financial protection for your business. It can also contribute to building a culture of trust and transparency within your organization, as it shows that you take employee dishonesty seriously and are taking proactive steps to protect the company.

Conclusion

Fidelity Insurance, also known as Employee Dishonesty Insurance, is a type of insurance that protects your business from losses caused by dishonest acts committed by employees. It is an important add-on to a standard business insurance policy, and can provide financial protection and peace of mind for your business.

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As a business owner, it is important to be aware of the potential risks and threats that can arise within your organization, and to take proactive steps to protect your company. By having Fidelity Insurance in place, you can mitigate the financial risks associated with employee dishonesty and build a culture of trust and transparency within your organization.