Fidelity insurance protects businesses from financial damages arising from illegal dealings. No conscientious senior executive should ignore the issues of transparency, prevention and the need to insure against this risk. Each year, German businesses sustain damages of several billion euros and the trend is on the increase. Motives vary greatly and are very difficult to identify in advance. Despite this development, fidelity insurance does not have a major role to play in medium-sized enterprises in particular. The product is mostly too complex, although this product can be relevant for every sector and business, however large or small. Any business can fall victim to white-collar crime.
What is insured?
Fidelity insurance protects your business in the event of financial losses due to deliberate, illegal actions, such as theft, embezzlement or fraud. Direct damage due to computer sabotage or betrayal of secrets is also insured.
In addition, many insurers also cover some of the costs associated with legal cases or the investigation of the damage.
Who is insured?
Fidelity insurance covers all employees and members of staff, irrespective of whether they are employed on a permanent or temporary basis. This cover also automatically applies to persons who only work on the company premises on a temporary basis. Cover applies worldwide and to all branches and subsidiaries.
Who provides the insurance?
Only a handful of insurers underwrite fidelity insurance in Germany. When it comes to claims adjustment, the vague legal terms frequently used in insurance conditions quickly separate the wheat from the chaff. The policyholder needs to be able to “trust” the insurer.