Fidelity Insurance
Protecting businesses from employee dishonesty risks
Fidelity Insurance protects businesses against direct financial loss caused by dishonest or fraudulent acts committed by employees during their employment. It covers theft, embezzlement, forgery, and misappropriation of funds or assets, subject to defined policy terms, limits, and exclusions.
Why Fidelity Insurance Matters
Employee fraud is a growing risk for MSMEs with limited internal controls. Even a single incident can cause material financial loss and regulatory exposure. Fidelity Insurance helps businesses absorb verified losses while strengthening governance and risk management expectations.
Key Benefits
Covers employee theft and embezzlement
Protects cash and financial assets
Includes forgery and fraud losses
Helps recover direct financial losses
Supports internal risk controls
Blanket cover options available
What’s Typically Covered & What’s Not
- Typically Covered
- Cash theft
- Fund embezzlement
- Forged documents
- Record manipulation
- Vendor collusion
- Typically Not Covered
- Prior known fraud
- Inventory shortages
- Indirect losses
- Legal penalties
- Employer collusion
Who Should Consider Fidelity Insurance
Fidelity Insurance is relevant for businesses handling cash, inventory, or client funds, including retail, manufacturing, healthcare, logistics, NBFCs, and professional services. It is particularly important where employees have access to accounts, payment systems, or valuable stock. The policy may be less critical for owner-only businesses with no employees or minimal financial handling.
Why Choose Avalani
As IRDAI-licensed insurance brokers in Gujarat, we put your business and needs first. You get customised coverage, verified valuations, claim assistance, and quotes from 20+ insurers for the best value.
Protecting What You’ve Built.
FAQs
What is Fidelity Insurance?
Protects businesses against financial loss caused by employee dishonesty or fraud.
What does Fidelity Insurance cover?
It covers direct financial loss caused by employee dishonesty or fraud.
Are all employees covered automatically?
Blanket policies cover all employees; individual policies cover named staff only.
What is the discovery period?
Typically 12 months after policy expiry to discover frauds occurring during cover.
Are investigation costs covered?
No. Costs to establish fraud are usually excluded.
Is prior knowledge of fraud covered?
No. Losses involving known dishonest employees are excluded.