Fidelity Guarantee
Fidelity Guarantee implies the faithful or loyal performance of a duty and is an insurance against the result of dishonesty both which stem from lack of fidelity. It is not an understatement to state therefore that no accounting system is fraud free.
Fidelity guarantee may therefore be effected by any organization or person who may suffer as the result of the dishonesty, embezzlement or misappropriation of funds/property, failure in the loyal performance of a duty or in certain cases the mistake of another. The need for this class of insurance cannot be over-emphasized.
The sum insured is the (Limited of Liability) or maximum value at the time and place of loss. Because of staff movements either through resignation, re-deployment or dismissal, it is better for this class of insurance to be underwritten by office rather than by name. this will ensure you are covered at all times even where new employees replaced vacant one(s).
There is no hard and fast rule as to which officer you must insure but the following employees within the organization appear justifiable.
The policy indemnifies the insured in respect of loss of money, goods and/or stock arising from dishonesty, larceny, embezzlement and fraudulent conversion of money and goods of the company by the category of staff(s) listed below:
