Fidelity insurance2019-09-23T13:00:50+00:00

en | de

Fidelity insurance

Companies unfortunately suffer, time and again, from cases of abuse of confidence by their own employees or even fraud by third parties. The protection against such a risk is the underlying reason for a fidelity insurance.

Nobody likes to talk about it – that’s why there is a high number of unreported cases concerning white-collar crime. Yet many companies are affected by fraud from outside parties or – particularly bitter and disappointing – from their own employees. In 2015 alone, our clients were compensated for damages amounting to approximately one million euros through fidelity insurances.

The reasons why an employee might become an offender are manifold: Often the causes are sad individual circumstances or hardship, such as addiction, failed relationships or illness, but also dissatisfaction with the employer. It is often easier to protect the company against outside offenders – e.g. scammers with the objective of getting your goods or money by fraud. Read more on two such cases here (German).

In any case, protection is required that should be equally effective and discreet. Globally covered by the insurance are the company’s own employees, including managing directors, board members, the supervisory board, interns, outside labor and temporary staff. Moreover, financial losses are insured which were caused, through outside interventions, by corporate enemies, hackers, as well as by treason or theft of secrets. A fidelity insurance (VSV) can even cover the non-payment of funds fraud not covered by a commercial credit insurance.

For example, a fidelity insurance covers the following damages caused by company-own employees or third parties:

  • Misappropriation

  • Fraud (including computer fraud)

  • Embezzlement

  • Intentional property damage

  • Theft

  • Theft of secrets

  • Legal costs

Again and again, we witness cases of commercial credit fraud or fraudulent non-payment of funds. That means companies receive orders from (alleged) buyers who do not intend – from the start – to pay for ordered goods. Providers of fast saleable products are particularly at risk. Transactions are concluded quickly and goods delivered without delay.

Such fraud is not covered by commercial goods insurances.

In Germany, fraudulent non-payment of funds is punishable in accordance with the general offense of fraud (Section 263 of the Criminal Code (StGB)). The offender will, of course, vanish and thus cannot be held responsible. Within the framework of fidelity insurance, insurance protection can also be granted for losses caused by third parties (fraudulent non-payment of funds). That is why we also believe that a fidelity insurance is important for your company.

Please contact us: We will analyze your company’s situation together with you and develop an individual, risk-appropriate concept for you.

Handschellen. Bild: Fritz Jörn, CC-BY-SA 3.0

Contact us – we are looking forward to your inquiry.

Frank OttoManaging Director
f.otto@viadelcredere.de
02272 919 85 12