Fidelity Insurance Overview
Having a need for fidelity Insurance may sound outlandish at first, but the harsh reality is that nearly every business is eventually victimized by fraud or theft. In this day and age, thieves (including your employees) do not need direct access to cash to steal from you; merchandise, supplies and securities are all fair game. You may also be susceptible to losses in the event that finished products or even raw materials are stolen right from under your nose. Essentially, any product can be a target for thieves if there is an opportunity to make a resale profit.
Real Canadian Fidelity Insurance Claims:
- Employee steals property and cash from employer
- Controller confesses to writing company cheques to himself totaling over $90,000
- The office bookkeeper of a small plastics manufacturer issued cheques payable to a shell company (she created) from company funds of approximately $100,000 over a period of 3 years
Fidelity Insurance Coverage
While standard property and inland marine insurance policies provide some protection from criminal acts, they often do not cover losses resulting from employee dishonesty. Fidelity insurance was developed to deal with the limitations of other policies and extend protection to include the fraudulent activities of employees.
Fidelity Insurance Exposure
While large companies are often more likely to garner attention from in-house crime because the scale is often larger, smaller companies may actually be more vulnerable to employee theft. Smaller companies tend to have fewer anti-fraud measures and internal controls in place, increasing their vulnerability to incidents of crime.
No matter the size of your company, employee crime remains a very real possibility, which is why it’s important to take steps to insure your business against losses with Fidelity Insurance and other risk management strategies.