Fidelity Guarantee Insurance

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Fidelity Guarantee Insurance Fidelity guarantee insurance (FGI) exists to insured cover direct pecuniary loss your firm or organisation may face against theft of the firm's own money, securities or property by an employee, partner, contractor or volunteer. FGI can also be known as first-party fraud, theft or employee dishonesty cover. Most business owners are not prepared to face the infidelity of their employees and its negative implications. It is not unusual to know of situations where employees suddenly go missing with a substantial amount of company money or assets. Fraud claims have increased in both frequency and value in the past few years. There are several reasons for this, but the main factor is that online banking makes it so much easier to fraudulently transfer money. FGI premium may vary, depending on: 1Guarantee amount 2 Number of employees insured 3 The insurer's underwriting requirements. Questions to consider when managing risks around Fidelity: -Do you have an external accounting team who audits your finances? -How experienced are the employees managing strata funds? -Do you have strict systems (checks and balances) in place? -How much money is your strata group managing? Importantly, FGI cover should not be confused with third-party fraud and dishonesty cover. Third-party fraud and dishonesty refers to theft of the client’s money, as opposed to the accountancy firm's own money, and is usually covered within the main insuring clause (civil liability) of a professional indemnity policy. For small business owners, liability and fidelity coverage are two different types of insurance coverage. Although liability coverage, sometimes known as a fidelity bond, provides more extensive protection, it specifically excludes the kinds of claims covered by fidelity insurance. The policy is usually taken by employers and plays a key role in the continuity plan of organizations. Organizations involved in business where cash or stock is entrusted in the care of the staff need this type of policy. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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