Specialised Cover

Fidelity Insurance

Direct financial loss cover for employee fraud, dishonesty, embezzlement, theft of cash or stock and forgery of negotiable instruments. Placed on a named-employee, position or blanket basis with discovery-period clarity built into the wording.

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Coverage at a Glance

Employee Fraud

Loss of cash, stock or assets from staff dishonesty

Forgery & Alteration

Fraudulent alteration of negotiable instruments

Named or Blanket Basis

Cover by individual, position or whole workforce

Documented Discovery

Cover triggered on discovery, not act, period

NamedEmployee Basis

PositionSchedule

BlanketCover Available

IRDAICompliant

Coverage

What Your Policy Covers

A structured fidelity placement covers direct loss, the means of loss and the cost of proving the loss.

Direct Pecuniary Loss

Direct financial loss to the insured caused by fraud, dishonesty, embezzlement or theft committed by an employee acting alone or in collusion, in the course of their employment.

Cash, Currency & Bullion

Loss of cash, currency notes, bullion and negotiable instruments held in the insured's care, regardless of whether on premises, in a safe or in transit.

Forgery & Alteration

Loss arising from forgery or fraudulent alteration of cheques, drafts, bills of exchange, promissory notes and other negotiable instruments accepted in good faith by the insured.

Stock-in-Trade & Property

Loss of stock-in-trade, raw materials, finished goods or business property arising from theft, removal or misappropriation by an employee.

Investigation & Audit Costs

Reasonable forensic accounting and investigation costs incurred to substantiate the loss and identify the responsible employee, subject to a separate sub-limit.

Re-establishment of Books

Cost of re-establishing accounting records or other business records destroyed, removed or altered by the dishonest employee during the period of the loss.

Workforce Integrity Cover

Our Approach

The exposure that lives inside the building, not outside it.

Burglary cover responds to the masked stranger. Fidelity responds to the trusted bookkeeper. Most material employer losses are caused by individuals on the payroll - which is why a well-structured fidelity programme matters as much as the perimeter security.

We map cash flow, stock flow and authorisation chains to identify the positions or individuals with the most realistic loss-causing capacity before any sum insured is set.

Cover basis is matched to workforce size: named-employee for small specialist teams, position basis where roles rotate, blanket for medium-to-large employers with broad cash-handling exposure.

Discovery period clauses are negotiated explicitly - so losses uncovered after an employee leaves remain recoverable, which is the single most common point of dispute in this class.

Who Needs This

Businesses That Carry This Risk

If your operations create the exposures described below, fidelity cover belongs in your insurance programme.

Cash-Handling Businesses

Petrol stations, retail chains, jewellery stores and any business with significant daily cash receipts or stock that passes through individual employees' hands.

Financial Services & NBFCs

Banks, NBFCs, brokerages, microfinance institutions and any organisation where employees access client funds or investment accounts.

E-commerce & Logistics

Warehouses, fulfilment centres and last-mile delivery operations where stock and cash flow through multiple touchpoints daily.

Hotels & Hospitality

Front-desk cash, F&B receipts, banquet collections and stockrooms - all classic exposures where positional fidelity cover is the right structure.

Manufacturing & Distribution

Production lines, raw material stores, finished goods inventory and despatch operations where employee handling creates loss opportunity.

Professional Services & SMEs

Smaller businesses where a single trusted employee handles accounts, payroll or petty cash without segregated controls.

How We Work

From Brief to Bound Cover

Three steps from your first conversation to a policy that is correctly structured and priced.

Risk Mapping

We map your cash flow, stock flow, signatory chains and authorisation levels to identify which positions or individuals carry meaningful exposure to direct or facilitated loss.

Placement & Structure

Cover is placed on a named-employee, position or blanket basis depending on workforce size and exposure profile. Sum insured set against the maximum loss any single employee could perpetrate.

Claims & Discovery Management

On a discovered loss, we manage forensic investigation, documentation preparation and insurer liaison through to settlement - within the discovery period clauses of the policy.

Key Benefits

Why Clients Place This Cover Through Us

Right Structure for Your Workforce

We pick named, position or blanket basis based on your actual employee count and risk-bearing roles - not the cheapest default the insurer offers.

Sum-Insured Sized to Real Exposure

Calculated against the maximum single-employee or collusive-pair loss your operations could absorb - rather than a round number unrelated to your books.

Forensic Investigation Cover

Many off-the-shelf policies exclude investigation costs. We confirm in writing that audit and forensic accounting expenses are included up to a meaningful sub-limit.

Discovery Period Clarity

We negotiate explicit discovery period language so losses uncovered after an employee leaves are still recoverable - the single most common cause of claim disputes.

FAQ

Common Questions

Named basis lists individual employees and assigns a sum insured to each - precise but admin-heavy for larger workforces. Position basis attaches the cover to a role (e.g. 'cashier', 'store-keeper') and applies regardless of who occupies it - useful for stable functions with rotation. Blanket basis covers the entire workforce up to an aggregate limit and a per-employee sub-limit - simplest for medium-to-large employers.

Most modern fidelity policies include a discovery period - typically 12 to 24 months after termination of employment or expiry of the policy - within which losses caused during the employment can still be claimed. The exact discovery period is policy-specific and is something we negotiate before placement.

Yes, where the policy is placed on a basis that aggregates loss across the workforce. On a strict named-basis policy with single-employee sub-limits, collusion can create a claim that exceeds individual limits. We always confirm the policy responds to collusive acts and matches the aggregate limit to that exposure.

Discovery letter detailing the loss, payroll and employment records establishing the period of dishonesty, audited accounts supporting the quantum, FIR or internal investigation report and proof of action against the employee (suspension, termination or criminal complaint as appropriate). We assemble this dossier on the client's behalf.

Two figures are agreed: an aggregate annual limit (the maximum across all losses in a policy year) and a per-employee sub-limit (the maximum any single employee can perpetrate without breaching). The right ratio depends on your cash and stock controls - we model both before placement.