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This type of insurance covers many types of financial crime: forgery, embezzlement, theft, and other dishonest acts. It’s a very common type of insurance among businesses. Crime surveys have found that around 35% of companies in Singapore have experienced financial losses due to employee fraud!
What Does Fidelity Guarantee Insurance Cover?
Fraud / Embezzlement: For instance, one of your employees forges your signature on your company cheques, and deposits $100,000 of company funds into their own account. This policy will compensate your loss.
Or, some of your workers collude with external parties to create false invoices. You lose $50,000 in fraudulent transactions. With this policy, you’ll be protected.
Theft: For instance, some of your employees steal $25,000 in inventory from your warehouse. This policy will reimburse your loss.
Or, dishonest employees steal $10,000 from your cash registers. This policy will cover your loss.
What Does Fidelity Guarantee Insurance Not Cover?
- Third-Party Losses: Financial losses suffered by third-parties like your clients, or members of the public due to your employees’ criminal conduct are not covered.
- Claims With Insufficient Evidence: Losses that are not backed by sufficient proof due to poor accounting, record-keeping or other reasons.
- Professional Negligence: Financial losses resulting from professional mistakes, or accidental omissions (not fraudulent activity). You’ll need a Professional Indemnity Policy to cover this.
- Extortion or Blackmail: Fidelity Guarantee Insurance does not cover this. You’ll need Crime Insurance to protect your business from such criminal behaviour. Reach out to us and we’ll craft a custom Crime policy for you.
Do I Need Fidelity Guarantee Insurance?
Fraud committed by employees is unfortunately very common. In a 2018 report published by PWC, 35% of companies in Singapore were victims of financial crimes committed by employees, up from 22% in 2016.
Although you can certainly report dishonest employees to the police, there is no guarantee the authorities can recover your lost money. You’ll only be truly protected in such cases if you have a Fidelity Guarantee Insurance policy for your company.
In particular, these types of businesses are especially vulnerable to employee financial crime:
Your employees frequently manage financial transactions
Your employees handle cash registers (Food & Beverage, Retail, Spas/Salons)
- You operate in the Financial Services industry
How Much Fidelity Guarantee Insurance Do I Need?
If you have fewer than 25 employees: we recommend you purchase Business Package Insurance. Many of these package insurance policies will include, among other things, Fidelity Guarantee Insurance of between $2,500 to $10,000 (depending on the package you choose).
If you have more than 25 employees: we recommend you purchase a standalone Fidelity Guarantee Insurance policy, because you will likely need higher coverage limits.
How Much Does Fidelity Guarantee Insurance Cost?
Major factors affecting Fidelity Guarantee Insurance premiums are: industry type, coverage amount, number of covered employees, and your firm’s risk controls.
With Provide, you save up to 25% on your premiums. Because our digital operating model creates lower overheads, we pass on every dollar saved back to our clients.