- What Is Employee Dishonesty Insurance?
- What is covered in Employee Dishonesty Insurance?
- What is not covered in Employee Dishonesty Insurance?
- How Much Does Employee Dishonesty Insurance Cost?
- Employee Dishonesty Insurance Claims Process - How to raise a claim?
- How to Renew Employee Dishonesty Insurance?
- Why Plum?
What Is Employee Dishonesty Insurance?
‘Employee Dishonesty Insurance’ is an insurance safeguard for employers against theft committed by their employees.
An Employee Dishonesty Insurance policy protects a business against financial impairments stemming from any criminal acts committed by an employee/employees like embezzlement, theft of money or securities.
Under such a situation, the insurance company indemnifies the insured for any loss which results directly from such criminal acts.
Employee theft is a significant concern for many employers. Therefore, it's crucial for all employers to comprehend this insurance coverage and its workings, ensuring they are prepared to utilize it if the situation demands.
In short, Employee Dishonesty Insurance is an insurance that:
Provides coverage for losses incurred due to deceitful actions by employees
Comes into effect when an employee steals money, or other assets from their employer.
What is covered in Employee Dishonesty Insurance?
Costs, legal fee and expenses incurred by the Insured towards Defence of any demand, claim, suit or legal proceeding which the insured has to establish arising directly from a loss covered under the policy conditions
Care, custody and Control
Any loss of Property, Money or Securities under the control and custody of an Insured incurred due to a fraudulent act will be covered for by the insurance company
Court Attendance Costs
For instances where the insured is legally compelled to attend a civil proceeding as a witness in a claim, Court Attendance Costs will be covered by the insurer
Credit Card Fraud
Loss suffered by an Insured resulting from Credit Card Fraud committed by a Third Party is covered
Data Reconstitution Costs
Cost of reconstituting data that is lost by the insured
Amount of any interest receivable or payable by the Insured resulting directly from the incident of loss
Loss Investigation Cover - Investigation Costs
Theft of Money or Securities/ Embezzlement
Covers reimbursement for your company in instances where employees steal money or securities, either through direct theft or unauthorized transactions
Forgery and Alteration
Covers instances where an employee forges a check, draft, or promissory note for personal gain at the company's expense
What is not covered in Employee Dishonesty Insurance?
Intellectual property rights and Trade secrets
Employee Dishonesty Insurance does not extend to protecting against the theft or infringement of intellectual property rights and trade secrets
It does not include consequential losses that arise as an indirect consequence of a covered event
Kidnap and Ransom
Risks associated with kidnapping and ransom situations are not covered under Employee Dishonesty Insurance.
Trade finance and Trade loans
Coverage for trade finance and trade loans are also not provided.
Losses resulting from acts of war, terrorism, or geopolitical unrest are not covered under Employee Dishonesty Insurance.
Prior and pending acts
Employee Dishonesty Insurance does not extend to covering losses that were discovered before or after the policy period.
Employee Dishonesty Insurance does not cover property damage resulting from fire incidents/ other fire related losses
Some other named exclusions are listed below. Do keep in mind that these policies are highly customisable to a business. To understand the coverages and exclusions specific to your policy, refer to the policy document or contact the Plum team.
Employees with Criminal Histories
How Much Does Employee Dishonesty Insurance Cost?
The cost of Employee Dishonesty Insurance is influenced by a multitude of factors, including the specifics of your business, your insurance requirements, and your industry.The size of your business is a critical factor.
The larger the number of employees, the higher the likelihood of one of them committing a crime against your business. Similarly, higher revenue implies more money at risk of theft, leading to higher insurance costs.
Insurance providers will also take into account your financial controls and security measures before providing a quote. Businesses with stringent protocols for handling money, deposits, checks, and transfers will likely pay less for crime insurance.
Plum understands the intricacies of Employee Dishonesty Insurance costs and business vulnerabilities. In order to simplify and make the process transparent, we have developed the Plum Business Policy Engine.
Our engine offers you valuable insights into policies suitable for businesses similar to yours, along with estimated expenses.
Employee Dishonesty Insurance Claims Process - How to raise a claim?
Following are the steps to file a Employee Dishonesty insurance claim;
Initiate contact on priority with the Plum team to report the incident.
Plum works promptly with the insurer partner and subsequent course of action is determined.
In collaboration with Plum and the insurers, an investigator is designated to assess the severity and analyse the details of the incident.
Expert guidance on containment measures to prevent the situation from worsening further is provided.
The Plum team aids you in comprehending the necessary documentation, which includes records on the extent of the impact, the actions taken for remediation, and any direct expenses incurred during the claims procedure.
Following an in-depth analysis of the documentation, the survey report is created.
Plum maintains a strong liaison with the insurer and policyholder throughout the claim approval process.
Types of D&O Insurance
How to Renew Employee Dishonesty Insurance?
To renew your Employee Dishonesty Insurance policy, contact the Plum team, who will initiate the renewal procedure.
Armed with your policy documentation and pertinent details, Plum will offer comprehensive guidance throughout the renewal process. Typically, a renewal with Plum entails the following steps:
Plum conducts a thorough evaluation of your policy parameters, including coverage, costs, and exclusions. This evaluation is benchmarked against market standards and industry peers.
Based on these evaluations/ alterations in your data or business operations, Plum provides tailored recommendations for shaping your Employee Dishonesty Insurance policy.
Once these policy recommendations are established, we collaborate with top-tier insurance partners in the market to craft the most exhaustive and competitively priced policies for your company.
The Plum team makes the process of renewing and booking a Employee Dishonesty Insurance policy smooth and hassle free.
The Plum team is adept with experts in the field of insurance. Having deep dived in the insurance industry for years now across various industries, helping SMEs and large enterprises alike, we have the right expertise to consult for your business . This experience helps us build expertise. The team will be by your side right from curating plans for your business to policy purchase and claims settlement
We leverage our strong insurer relationship and bring evolving knowledge of claims trends, reinsurer market and price fluctuations to the table. This allows us to present competitive and comprehensive plans in the market, tailored to your business.
Smooth claims settlement
Claims are complex in nature and the repercussions of these claims may sometimes take days/months to recover from, if not years. Plum helps you navigate such long-drawn claims processes with ease by liaising our deep partnership with insurers, legal counsel, and our team of experts.
Which insurance covers dishonesty of employee in particular?
Employee Dishonesty Insurance specifically covers dishonest acts by employees.
Is employee dishonesty the same as fidelity coverage?
Yes, Employee Dishonesty Insurance is often referred to as Fidelity Coverage. Both terms largely refer to insurance that protects businesses from losses due to fraudulent acts by employees.
Different insurance providers may employ varying terms for these insurance policies and make adjustments to coverage based on such distinctions, but the core principles remain unchanged.
Is employee dishonesty the same as employee theft?
Employee theft is a form of employee dishonesty. However, Employee Dishonesty Insurance covers a broader range of fraudulent acts, including embezzlement and forgery, not just theft.
What is the meaning of employee dishonesty?
Employee dishonesty refers to fraudulent acts committed by an employee against their employer. This can include theft, embezzlement, forgery, or other deceptive acts that result in financial loss for the business.