Amidst a plethora of insurance options we often get confused which one to opt for and which one to avoid. But there are certain insurance policies that you cannot do away with and they are not very talked about. Yes, fidelity insurance is one of those kinds, which is utmost important for industries but very less talked about.
So, let us know what exactly is the fidelity insurance and how should you go about it.
See it is very difficult for you to keep everyone honest in your organisation and so you must always think from a different angle that you can’t make everyone honest but yes you can be equipped to deal all sorts of problems emanating from the dishonesty of your employee.
So in a nutshell, fidelity insurance is a policy that is going to compensate the company for any financial fraud conducted by any employee. But this policy is going to compensate for a very limited amount of money.
Now, under fidelity insurance there are multiple policies available like individual policy, collective policy, floater policy and blanket policy.
There are multiple things to know before you go out to buy this policy. This policy purely covers financial damage done to an organisation by any unscrupulous element in the company.
Once you get to know that there is a loss reported by your organisation due to the dishonesty of one of your employees then immediately inform the insurer. Disciplinary action must be taken against that employee. The company after this will have to furnish proof to show loss incurred by the organisation. A forensic audit will take place. Sometimes these frauds are very complicated and it is very difficult to know the degree of fraud.
So, this insurance can insulate you from the damages that can be done by your employees.