FIDELITY / COMMERCIAL CRIME
Commercial crime insurance (otherwise known as Fidelity Guarantee cover) covers companies against their direct financial losses incurred through fraud, theft or dishonesty committed by their employees.
Theft and dishonesty occur in every business, if you do not believe it is happening, it’s probably only because you have not yet discovered it !
Costing South Africa in excess of R 930 m a year, commercial and white-collar crime is on the rise in South Africa – especially among senior to top management.
Policy triggers :-
- Fraud, theft or dishonesty committed by employees
- Fraudulent transfer instructions
- Third party computer fraud
Policy Extensions (note that these are not extensive : refer to the product booklet for more)
- Company acquisitions: covered automatically up to 10% additional staff or 10% additional turnover
- Extortion – automatically included at no additional charge
- Claims preparation costs, Reinstatement of Office Records & Costs of recovery
- Sums insured may be in excess of the deductible and not reduced by the deductible ~ this must be specified in the broking notes
- Personal Financial gain has been deleted from the Defined Events to reduce the burden of proof
- The Extended Discovery Period has been included giving more time for the Insured to discover and report a potential loss
- Cover is automatically on an ‘each and every occurrence’ basis so that our policyholders are saved from having to purchase a reinstatement of the sum insured
- The prescription period has been extended from 12 to 24 months
- Minimum R 1 000 000
- Maximum R 500 000 000
Insured through The Hollard Insurance Company Ltd