Fidelity insurance

Protect your company from crime and corruption

Fidelity insurance is cover for losses arising from the corrupt actions of employees, partners and trusted third parties. The insurance covers the costs of investigation, legal action and financial losses stemming from the incident, for example contractual penalties.

Fidelity insurance is an important part of corporate risk management, as it provides protection for corrupt actions by people the business trusts to do the right thing, which, our claims experience shows us, is not always possible. Addiction, debt, personal and family issues, and outside pressure from criminal actors can all lead to your trusted people committing dishonest acts that they would never previously have dreamed of.      

What is fidelity insurance for?

Fidelity insurance responds when crime and corruption takes place inside the company, by employees or trusted people and third parties, for example suppliers.

The most common fidelity insurance claims relate to:

  • Dishonesty
  • Theft
  • Embezzlement
  • Fraud
  • Forgery of documents
  • Sabotage of internal business processes
  • Betrayal of trade and business secrets.

Howden hendricks Fidelity insurance policy highlights

Designed from almost 30 years’ experience, learning and continuous improvement, Howden hendricks provide robust protection in a wide range of fidelity / fraud scenarios.

Some of the key benefits of our fidelity insurance:

Broad definition of trusted third party

Organisations and supply chains can be complicated. That is why our policies work to a very broad definition of trusted third party that includes not only company employees, but also external staff, temporary workers, lawyers, tax consultants and auditors.

High sub limits for third parties – up to 50% of the total policy limit

While fidelity insurance is traditionally designed to cover fraudulent acts by your own employees, to reflect the complexity of the modern supply chain, our policies allow coverage for criminal acts by third parties. You can claim up to 50% of the sum insured for damage from acts committed by trusted persons outside of your company. 

This also applies in the event of industrial espionage.

Protection even if the perpetrator is not identified

It is not always possible to catch the perpetrator; sometimes you only see the damage they caused, even after a thorough investigation. Our policies grant coverage in these scenarios, where it is highly likely a trusted person was responsible, even if it cannot be proven.

Covers misdirected flows of money and goods

Sometimes the employee is not aware they are being manipulated by criminals. Manipulated e-mails, falsified documents or legitimate-sounding telephone calls can deceive employees or business partners into transferring funds or goods into the hands of criminal groups. Such damages are also covered.

Attacks on third party third party electronic data processors (EDP)

Companies are protected not only in the event of third-party intrusions into their own EDP, but also in the event of intrusions into the EDP of their service providers ("man-in-the-cloud" attack) or attacks in that infiltrate communication with business partners ("man-in-the-middle" attack).

Non-targeted cyber attacks, e.g. phishing and ransomware

Any organisation can fall victim to malware such as the Locky, WannaCry or NotPetya viruses. Our fidelity policy covers these non-targeted attacks, including the costs of continuing operations. Find out more about our cyber insurance.

Costs of investigations

The external and internal investigations to clarify the amount and causes of damage can be time-consuming and cost-intensive. Our fidelity policy can direct up to 50% of the total sum insured to finance such investigations.

Fidelity insurance is an important supplement to Directors’ and Officers’ and cyber protection. We can help you align all your policies to offer the comfort of 360° protection.

In summary 

There are many scenarios in business where you need to trust people with your money. When your trust employees and third parties, there is risk that trust could be abused.

Fidelity insurance covers an organisation from financial damage a broad range of scenarios including:

  • Embezzlement
  • Forgery
  • Vendor fraud
  • Fund transfer
  • Robbery
  • Pilferage
  • Online scams
  • Phishing.

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