Employee Dishonesty Insurance

Employee Dishonesty Insurance for those you trust

This cover is also known traditionally as “Fidelity” or the more recent terms of Crime cover or Employee Theft or Employee Fraud.

Most of the policies concern only internal theft by staff but some Commercial Crime policies also cover external events. These are more specialist covers and certainly worth considering, but for small to medium businesses unfortunately they often have an ongoing problem with their own staff helping themselves.

The loss covered is when a staff member dishonestly or fraudulently takes is for a loss of assets such as money, negotiable instruments or goods that occur during business operations.

There is still an onus on the Insured policyholder to follow certain conditions of the cover when needing to make a claim including only being able to report a matter where it has occurred in the past 12 months and you have up to one year if the policy is not renewed or lapsed to find and report the matter to insurers.

The policy also covers the claim preparation costs in establishing the extent of loss. Also the section can be extended to include Super Funds and Social Club funds.

This cover can be bought as a stand alone policy but is quite cost effective when taken as a section of a Business Pack or within a Management Liability policy. Some Professional Indemnity policies can be extended also for Fidelity coverage but this is aimed at the Trust Funds or money belonging to clients that Professionals can often be responsible for.

For more information about this risk read more here

Latest News

Illegal or unsuitable cladding now a big issue

Why we have laws, regulations and Australian standards? Because some people just do the wrong thing all for the sake of making money. The cladding issue is the subject of 4 Corners program on the ABC.

We are already seeing Insurance policies now placing exclusion endorsements into their policies excluding and claims relating to illegal cladding. We are seeing Governments demanding Audits of all existing buildings above a certain height. There are accusations of Builders taking other short cuts such as on Wiring, Pipes and sprinkler systems. 

The question is, who is to blame? Who will take responsibility?

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Small business in NSW

Right after the NSW Government have reimposed Fire Service Levies, they have at least made an effort for small business. The government has announced it will abolish stamp duty on a number of policies taken out by a small business. This is an important change.

What is a small business? In order to gain the exemptions, the business must be a small business for Capital Gains Tax Purposes for the income year in which the insurance is effected or renewed. A small business for CGT purposes is: “an individual, partnership, company or trust that is carrying on a business, and has an aggregated turnover of less than $2 million.”

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