The Enemy Within: Understanding Fidelity Insurance
It’s the root of all evil, so they say. And when a person feels he or she has the inside track on how to siphon off some of that money for himself or herself, it surely spells trouble.
Employees and staff support personnel, when hired, are supposed to be loyal to the employer. They are called on to demonstrate fidelity to the company or organization, in other words.
But occasionally, those employees find that they are not immune to the temptation of taking a little off the top. The boss will never miss it, they rationalize. Embezzlement like this can occur in the most unlikely situations, too. The nice lady who runs the church office. The 25-year company vice president. The campaign manager. They have violated the expectation of fidelity.The lure of easy money is probably as old as the concept of money itself. Obviously, that never makes it right or even excusable. Knowing that it may happen to any organization at any time, however, means establishing the proper protections and recovery options.Fidelity insurance protects business owners against just such dishonest employees. Companies that allow certain employees access to confidential information, such as financial institutions, benefit from obtaining fidelity insurance. Fidelity insurance covers unauthorized activities on the part of employees, asset protection, external fraud and technology risks.Fidelity insurance is also called bonding because the fidelity bond reimburses the business owner for damages caused by dishonest employees. For instance, cashiers, bank tellers, corporate officers and directors are generally covered under the employer’s fidelity insurance.Seemingly easily planned fraud can present a tempting opportunity for those within an organization. Getting educated about this possibility and putting fidelity insurance stopgaps in place improves your odds in keeping that activity out of your organization.The objective, experienced, and capable assistance of the team at The Reschini Group can bring your organization the expertise needed to assess the likelihood of fraud and embezzlement to occur, along with ideas on how to both prevent it and to obtain the proper coverage should it take place.
Copyright 2018 The Reschini GroupThe Reschini Group provides these updates for information only, and does not provide legal advice. To make decisions regarding insurance matters, please consult directly with a licensed insurance professional or firm.