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Fiduciary Liability

Fiduciary liability insurance is a necessary coverage for just about every business. The coverage provides businesses protection from loss of money, securities, or inventory resulting from a crime. Crimes may result out of embezzlement, forgery, robbery, safe burglary, employee fraudulence, fraudulent fund transfers, counterfeiting, computer fraud, or other criminal acts.

These crimes often take advantage of weaknesses in your company’s controls. From fictitious accounts payable, non-existent vendors to utter theft of money and property; workplace fraud can be expected in even the best work conditions.


Two categories of crime insurance liability are usually found, although our agents may combine coverage to find the best protection for your business:

  1. Money and security coverage pays for money and securities taken by robbery, theft, burglary, disappearance or destruction.
  2. Employee dishonesty coverage pays for losses incurred by dishonest acts of employees, such as embezzlement or theft.
1. Why do business owners need employee dishonesty insurance? Fraud and embezzlement in the workplace is on the rise. Small companies can be especially effected by theft and embezzlement because they can’t afford extensive safeguards and aren’t large enough to absorb losses. Workplace crime is carried out by employees 80% of the time. One in four employees who has committed fraud against their employer had been with the company more than ten years. 2.Is employee dishonesty insurance the same as a fidelity bond? Yes, in most cases they are considered the same type of coverage. Employee dishonesty insurance is also sometimes called crime coverage, employee dishonesty bond, fidelity bond and crime fidelity insurance. 3. Who is covered under an employee dishonesty insurance policy? An employer is protected from theft by its employees. In addition employers are protected from covered losses due to burglary and destruction. The exact definition of “who” is covered is defined in the policy, but should include all current or former employees, partners, members, directors, volunteers, trustees, seasonal employees and temporary persons at your direction and control.