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Commercial Insurance

Fidelity Guarantee Insurance from HDFC ERGO

Business is meant to be a fair business, but frauds and dishonesty in contractual obligations are a reality of the business world. While we do not mean to say that frauds are everywhere, but the instances of counterparties – in large corporate as well as Small & Medium Enterprises – walking away from or not honoring contractual obligations are reported in the media with regular frequency. At number of occasions, insiders / employees of the companies are involved in fraudulent activities that cause losses to the businesses. While some of these counterparties do it due to genuine reasons, many indulge in fraudulent practices as regular practice. To safeguard your business interests from unscrupulous counterparties, HDFC ERGO’s Fidelity Guarantee Insurance ensures that your business does not suffer because of a few bad apples among them.

HDFC ERGO’s Fidelity Guarantee Insurance policy broadly covers monetary loss sustained as a result of any act of fraud or dishonesty committed by the employees in the course of performance of their duties.

HDFC ERGO’s Fidelity Guarantee Insurance Policy covers direct financial loss due to any act of fraud / dishonesty committed by employee of the companies on or after the date of commencement of this policy.The cover is also valid during uninterrupted service with the Insured and discovered during the continuance of this policy or within twelve calendar months of the expiration thereof and in the case of death, dismissal or retirement of the Employee within twelve calendar months of such death, dismissal or retirement whichever of these events shall first happen. For an additional premium, HDFC ERGO’s Fidelity Guarantee Insurance policy can be extended to cover the risk of terrorism.

The insured can decide on the Sum Insured for HDFC ERGO’s Fidelity Guarantee Insurance, per person limit or the per event limit to be covered under the Policy depending on the risk exposure and measures taken to prevent incidence of frauds.

Like all non-life Insurance policies, HDFC ERGO’s Fidelity Guarantee Insurance Policy comes with a list of exclusions – the conditions that are not covered under the policy. The HDFC ERGO’s Fidelity Guarantee Insurance Policy does not cover loss and/or damage from:

  • Outside territorial limits
  • Losses not falling within retroactive date (two years from the date of discovery of a loss)
  • Losses incurred before policy inception date
  • Consequential losses
  • Losses which has not occurred in connection with occupation and duties of the employee.
  • Willful Acts or Gross negligence