Fidelity Guarantee Insurance
At Bima Vista, insurance isn’t just protection—it’s empowerment with vision.
We deliver clear, modern solutions that secure your life, health, and future.
Frequently Asked Questions
1. Does this cover fraud by family members or partners?
No, it only covers employees, not partners, directors, or family members, unless they’re formally employed.
2. Can I get cover for temporary or contractual staff?
Yes, but only if they’re included in the policy and their details are declared (unless you’re taking a blanket policy).
3. What happens if multiple employees commit fraud together?
The policy can respond, but the total payout will depend on the sum insured chosen and how the policy is structured (e.g. floater or blanket).
4. Can I increase coverage midway if my team expands?
Yes. Most policies allow mid-term endorsements to add more employees or increase the sum insured.
Protect Your Business from Employee Fraud
Even trusted employees can sometimes break that trust. Fraud, theft, embezzlement, forgery, they can all quietly bleed a business dry, and it’s often discovered too late. Fidelity Guarantee Insurance is designed to protect employers against these “white-collar” crimes.
It acts as a financial safety net when employees misuse their position and cause direct money loss to the business.
What Does It Cover?
This insurance covers direct financial loss caused by the dishonest or fraudulent acts of employees, like:
- Theft of money, securities, or goods
- Forgery or embezzlement
- Misappropriation or cheating
Only direct loss is covered, not business losses caused because of the incident (like losing clients or reputation).
Important Conditions
- The fraud must have occurred while the employee was performing official duties
- It must be discovered within 12 months of:
- The policy’s end date, or
- The employee’s resignation, dismissal, retirement, or death,
whichever is earlier
- If an employee who committed fraud is re-hired, they’re no longer covered
Types of Fidelity Guarantee Policies
Depending on the business size and staff structure, different policy formats are available:
Policy Type | What It Means |
Individual | Covers one specific employee (e.g. a cashier) |
Collective | Covers a list of named employees, each with their own sum insured |
Floating/Floater | Covers multiple named employees under a single total sum insured that reduces as claims are made |
Position-based | Covers positions (e.g. Accountant, Store Manager) instead of specific people |
Blanket | Covers the whole staff — no names, no positions. Offered to large, reputed firms only, where the employer does background checks |
Blanket policies are useful for large firms; smaller businesses usually go for individual or collective types.
Premiums: What Affects the Cost?
The premium is based on:
- The nature of your business
- The level of risk involved in the employee’s role (e.g. someone handling cash daily vs. a backend admin)
- Your company’s internal checks and supervision systems
The stronger your control systems (like audits, dual authorizations, etc.), the lower the risk, and the better your premium pricing may be.