employee fraud insurance
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Employee Fraud Insurance


Employee Fraud Insurance or Fidelity Guarantee insures your business against loss of money, negotiable instruments or goods belonging to the business – resulting from an act of fraud committed by an employee.

The cover is in effect if:

  • It is an employee who has committed the fraud
  • The whole of the loss occurred in Australia
  • The fraud is discovered during the period of insurance; generally within a 3 month timeframe of it occurring.
  • The incident is reported to the police and/or prosecuted.

What is Fraud or Fidelity insurance?

Financial losses incurred by workplace crime are not typically covered by property insurance policies. If cover for this risk is required, then fraud, crime or fidelity insurance can be purchased.

Fraud or fidelity insurance is an insurance policy that protects against financial loss from an employee’s or an office holder’s dishonesty.

Crime insurance protects against financial loss whether the attack has come from inside the organisation or has been committed by a third party such as a burglar or computer hacker.

Fidelity insurance can be a standalone policy or can be included as part of Business Pack covers.

Guarding Against Fraud

  • Screening job applicants thoroughly;
  • Creating a positive work environment, where employees feel valued;
  • Making it well known to employees that thieves will be caught;
  • Being aware of staff having financial difficulties – or an unexpected rise in their living standards;
  • Installing a security system;
  • Not allowing one person to handle and control the finances;
  • Taking time to review accounts;
  • Carrying out surprise audits;
  • Not allowing employees’ handbags near cash registers;
  • Paying above minimum wages;
  • Requiring all cheques to have two signatures; and
  • Setting up a system allowing anonymous reporting of co-workers.

Employee Fraud Facts

  • The Australian Federal Police say 70% of all business fraud losses are from staff or former staff, amounting to at least $1.5 billion a year.
  • A 2006 KPMG Fraud Survey showed that 14% of employees taking part in fraudulent conduct had a history of dishonesty with previous employers.
  • False invoicing and theft of cash or inventory were the most common frauds according to the 2006 KPMG Fraud Survey.
  • Experts believe the true level of employee theft is higher than statistics indicate. A 2005 Australian Institute of Criminology report found only one in 17 incidents of employee theft was reported to police.

Please Contact Us for any further discussion on Fidelity or Employee Fraud Insurance – we would be happy to talk through your options and arrange cover.

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CGU Insurance Named Insurer of the Year

CGU has emerged from a tumultuous year of change to be crowned NIBA’s 2015 General Insurer of Year, amid stiff competition from QBE and Allianz.

It’s the first time CGU has taken out the award, which comes after its parent company IAG completed an enormous restructure, prompted in part by its acquisition of Lumley.

QBE took runner-up honours.

IAG Chief Executive Commercial Insurance Ben Bessell says he is delighted that CGU has built on its finalist placing of last year to take the main prize.

“Our business is built around our partnerships with brokers and we place great value on the recognition we receive from them. I want to thank them for the support they continue to give us and for this vote of confidence,” he says.

“To win this award is particularly rewarding in a year where we’ve experienced challenging market conditions, heavily invested in setting ourselves up for the future and brought the best of both Lumley and CGU into our business. And I think it shows that we are on the right track at CGU.”

The General Insurer of the Year Award, inaugurated in 1998, is voted for by NIBA member brokers, who rate insurers’ products and services in a range of categories as part of the annual Broker Market Survey. More than 1100 brokers completed the survey this year.

Linda Evans, NIBA’s Professional Development Executive in charge of the survey, says: “Once again the voting was extremely close between the finalists and we congratulate CGU for winning this award for the first time.

“The competition among insurers to provide the best products and service to brokers and their clients is always very keen. The award is a great achievement and testament to the effort that CGU has put in to
meeting brokers’ expectations.”

Zurich took home the award in 2013 and 2014 but a tight field kept it out of finalist contention this year.

*Article reproduced from NIBA

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Insurance News Sept 2015

Catastrophes slice industry profits almost in half

Post-quake reputation worries NZ insurers

Global warming raises triple threat

Logging ‘increases bushfire risk’

EQC pledges to fix shoddy repairs

ICNZ appoints code committee

Windswept IAG records 41% profit plunge

QBE ready to grow as profits soar

Soft market hits Centrepoint premium funding

Willis targets resource sector with WA acquisition

Date set for Suncorp CEO handover

QBE to increase stake in Indian venture

Asian expansion pushes up Cover-More profit

Technology expert to join IAG’s digital drive

New CRO leads senior appointments at Ansvar

Far Out Friday: Boy punches hole in $2.1 million painting

Weekly Wrap: Research reveals $36 billion reasons to scrap insurance taxes

Austbrokers announces small gains in tough market

Steadfast reveals acquisition war chest

Ratings agency reviews QBE

Australia’s ‘happiest’ insurance customers named

Steadfast announces bumper results

Insurance leader backs brokers

Zurich make $12 billion offer for RSA merger

Innovative new cover to be launched

QBE boost to overseas investment

Insurer announces price cut

Free app to fight under-insurance

Insurer announces ‘pivotal appointment’

IAG stresses Asian growth

Chinese explosions could cost 2 major insurers US$1.5 billion

Lloyd’s addresses drone risks

IAG takes 30% hit on insurance profit

Technology stokes insurers’ fears

NSW at risk amid ‘massive underinvestment’ in flood mitigation

Court rules against insurers in NSW bushfire case

Hospitals face flammable cladding fears

NIBA promotes advice on strata cover

Austbrokers builds on non-broker assets

Steadfast eyes Asia as acquisitions drive growth

Austbrokers acquires corporate broker

Ansvar helps UK parent post profit surge

Moody’s may upgrade QBE ratings

Move into general insurance pays off for Australian Unity

Humphreys takes helm at Steadfast IRS

iSelect profit jumps on diversified strategy

NZ tourism group partners with JLT, AIG

El Niño could be ‘strongest ever’

NZ insurer CBL announces Aussie acquisition

Brokers offered huge convention prizes

Brokers on Underwriting Agencies survey

Insurer announces tech update ‘to compete and grow’

Austbrokers announces latest acquisition

Insurers name their biggest risks

Inaugural industry awards announce nominees

Is the end of the soft market almost here?

Sparke Helmore announces new insurance hire

ASIC funding under review

Workers comp changes take shape

Austbrokers ‘not looking at Asia’

NIBA launches broker guide to key market

Austbrokers announces small gains in tough market