Fidelity Guarantee
Fidelity Guarantee is a specialized protection offered by General Takaful providers like Etiqa, STMB, Takaful Ikhlas, and Zurich. This coverage safeguards your business against financial losses resulting from acts of theft, fraud, or dishonesty committed by employees during their employment. It ensures that any loss of money or property caused by these actions is compensated, giving businesses a vital layer of security. Fidelity Guarantee is available as an add-on to the Fire SME plan, offering comprehensive protection at an economical cost.
According to STMB, Fidelity Guarantee:
“Covers for the loss of money or property sustained as a result of fraud, theft or dishonesty by an employee in the course of employment”.
Coverage
Protects Against Financial Loss
Provides coverage for your business against various financial losses, ensuring stability and security even in unexpected situations.
Covers Loss of Money or Property
Ensures compensation for stolen cash or assets.
Employee-Caused Loss
Applies specifically when financial losses result from an employee's actions.
Theft, Fraud, or Dishonesty
Includes coverage for dishonest acts like stealing or fraudulent activities.
During Employment
Protects against losses that occur while the employee is performing their job duties.
Case Study
Scenario 1: Embezzlement by an Employee
An employee stole a large amount of money from their company over several years. The company kept detailed records of their finances, which helped them prove the theft. They then filed a claim with their fidelity coverage and were able to recover the money they lost.
Scenario 2: Forgery of Invoices
A business lost money because a vendor submitted fake invoices for payment. The company conducted a thorough investigation, which uncovered the fraud. They filed a claim with their fidelity coverage and received compensation for the loss, showing how important it is to regularly audit and check financial records.
Scenario 3: Internal Theft in a Retail Business
A retail company discovered that one of its employees was stealing goods. The company acted quickly, gathered all necessary documents, and filed a claim with their fidelity coverage. Thanks to their fast action and proper documentation, they were able to recover the value of the stolen items through their protection.
More on Fidelity Guarantee
It cannot be taken as a Standalone Protection, but as an Add-On to the Basic Plan: Fire SME
Fire SME is a business coverage that is under the category as OPEX.
Fire SME and all its Add-Ons are very economical for its contribution value per Benefit Covered.
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