What is Employee Dishonesty Insurance?
Employee Dishonesty Insurance, otherwise known as Fidelity Insurance is a policy which protects your business against losses directly resulting from dishonest acts from your employees.
What does Employee Dishonesty Insurance cover?
Employee Dishonesty Insurance typically covers acts involving theft or misappropriation of funds, fraud, sabotage and even acts of corporate espionage.
Employee Dishonesty example
This example of Employee Dishonesty has four employees working in collusion defrauded their employer through a faux invoicing scheme. The employees, including a senior project manager, established fictitious contractors and submitted invoices for work performed by other genuine contractors. The employees converted the invoice payments for their own use.
The situation came to a head when one of the genuine contractors commenced legal proceedings against the business for overdue payment which uncovered the dishonest faux invoice payment scheme.