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

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D&O premium pool ‘must treble’ to return to profitability

A new report – called "Show Me The Money!" by insurer XL Catlin and law firm Wotton + Kearney – is the second in a series of three white papers on securities class actions and their impact on the Directors & Officers Liability (D&O) market. The main conclusion is that Directors’ and officers’ (D&O) insurance premiums are under-priced significantly and need to rise strongly to restore profitability. The main risk areas are those exposed to securities class actions, 

It says Directors & Officer's Side A, Side B and Side C cover has been chronically underpriced since at least 2011, while the frequency of class actions is increasing as more plaintiff lawyers and litigation funders enter the space.

The analysis suggests last year’s overall premium pool of about $210 million would need to increase by at least three times to establish a profitable market, if it is assumed all other factors stay unchanged.

“Recent market developments would indicate most D&O insurers are now endeavouring to restore some semblance of profitability to their portfolios after years of market losses,” the report says.

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• over $5 million has been paid EACH DAY to assist local communities, residents and businesses.

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