Fidelity Insurance Centre
Crime Insurance
Welcome to RGIB’s Fidelity Insurance Centre Insurance

Fidelity Insurance may also be called ‘Employee Dishonesty Insurance’ or ‘Crime Insurance’

SME Business   ●   Corporations   ●   Non-Profit Organisations    ●   Associations   ●   Clubs

The word Fidelity means “faithfulness; adherence to right; careful and exact observance of duty, or discharge of obligations”

In simple terms, Fidelity Insurance is based on the meaning of the word “fidelity” - therefore, Fidelity Insurance is an insurance policy that protects a Business or Organisation against financial loss as a result of an employee’s and/or officeholder’s dishonesty [breach of fidelity].

Did you know:-

  • approximately 80% of workplace crime is carried out by employees; and

  • in almost all cases, theft of funds &/or property from non-profit organisations, associations & clubs is carried out by their very own officials?

Employee dishonesty is a crime; it can take many forms such as embezzlement of funds, false invoicing, theft of cash false inventory, payroll fraud and computer fraud to name a few however, such crime-related losses are not typically covered by property or liability insurance policies.

Similarly, dishonest acts of an organisation’s official, committee member &/or secretary which result in a financial loss to the organisation is also a crime; but once again not typically covered by property or liability insurance policies.

Thus, Fidelity insurance is a necessary piece of cover for any small businesses and organisation but, not all losses caused by employees or officials are covered; for instance,

  • losses caused by carelessness or by deliberate acts that were not intended to provide any gain for the employee or official would not be covered;

  • coverage does not extend to accounting errors.

  • write-downs of inventory at year-end due to shrinkage is not a claim, unless it can be tied to specific acts of an employee or acting with manifest intent.

Embezzlement is by far the most common form of ‘breach of fidelity’; often carried out by the very person/people entrusted with the financial heart of a business or organisation. It occurs at every level, from employee stealing money out of the till; a club secretary or treasurer betting the club’s membership dues on a horse; all the way through to millions of dollars siphoned out of sophisticated financial institutions by false invoicing; embezzlement is rife and getting worse.

Fidelity insurance doesn’t have to be a stand alone product; for instance, if a business or organisation takes out Management Liability insurance, Fidelity can often be incorporated as an inclusion for little or no extra cost but, with the benefit of adding a higher level of protection.

Management Liability Insurance is an absolutely brilliant insurance product; similar toDirectors & Officers insurance, it actually goes further by offering a wider scope of protection extending beyond ‘management’ to the company or organisation itself. Find out more about Management Liability Insurance by clicking here

Independent Contractors or Consultants – are not employees, nor are they necessarily officers of an organisation thus, any business or organisation using independent contractors or consultants in a capacity that touches upon their finances &/or property would be wise to insist on such contractors or consultants having their own Fidelity insurance as a mandatory requirement before providing services.  

Fidelity Bonds – are used in situations involving risk that an employee could steal from a third party. For example, a stock brokerage would bond employees to cover potential thefts from customers [third parties].

Unlike Fidelity Insurance, which involves two parties, the ‘insured’ and the ‘insurer’; Fidelity Bonds involve three parties.

  • the ‘Principal’ is the person who might cause the loss;
  • the ‘Obligee’ is the person who would collect if the Principal caused a loss; and
  • the ‘Surety is the entity that pays the loss. (The Insurer &/or the Surety Bond Issuer)

Find out more about Fidelity Bonds by clicking here


For more information about Fidelity Insurance

Getting the right Fidelity Insurance cover for your needs

RGIB is a commercial insurance specialist; we’re one of the     Frequently Asked Questions about Fidelity Insurance
industry’s leaders in arranging Fidelity insurance for all types of businesses and organisations, no matter how big or small the client is..

We know what Fidelity insurance products are on offer; we know which underwriters are the best at it; who pays claims without complication; and who offers the widest range of protection for our clients at the most affordable price.

Warning:- Relying on the inclusion of Fidelity insurance as an ‘extra’ to a standard property or liability insurance policy might give a false impression that you’re adequately covered however, the terms, conditions, limitations and exclusions affecting the fidelity cover generally link back to non-fidelity specific clauses in the policy which could render the cover worthless.  

It’s our job to get the right fidelity product for you; either as a stand alone policy or in combination with Management Liability Insurance and/or a Broad-Cover Property Insurance package designed to incorporate the specific requirements of fidelity.  

  For a No Obligation - Free Insurance Quote you have a couple of choices:-

     Telephone us and speak directly with one of our experienced staff:
  Email us Quick & Brief Details and we will phone you at a time requested:  

RGIB is expert about Fidelity Insurance, also known as Crime Insurance or Employee Dishonesty for business in New Zealand.
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