Insurance Product | South Africa
Fidelity Guarantee Insurance in South Africa
Protect your business against direct financial loss caused by employee theft, fraud, dishonesty, or misappropriation.
Fidelity guarantee is aimed at direct loss caused by dishonest acts of employees and is usually subject to strict underwriting, controls, and claims requirements.
What is Fidelity Guarantee Insurance?
Fidelity guarantee insurance is designed to protect a business against direct financial loss resulting from fraudulent or dishonest acts committed by employees.
It is often considered by businesses that handle cash, payments, stock, sensitive financial processes, or positions of trust where internal theft or fraud could cause serious damage.
Fraud and theft by staff
Can respond where an employee steals money, stock, securities, or other insured property causing direct financial loss to the business.
Useful for businesses with handling risk
Often relevant where staff process payments, manage inventory, control accounts, or hold positions with access to assets or funds.
Support after internal loss events
The right cover can help reduce the financial impact of significant internal dishonesty events that affect working capital and operations.
Common scenarios
Cash theft by an employee
A staff member misappropriates business funds, banking receipts, or customer payments and the business suffers a direct loss.
Stock or inventory fraud
An employee manipulates records or removes insured stock or goods for personal gain.
Accounting manipulation
Fraudulent internal activity causes financial loss through false payments, altered records, or unauthorized transfers.
Why choose SimplyCovered?
Commercial risk guidance
We help explain when fidelity guarantee may be relevant as part of a wider business insurance structure.
Better underwriting presentation
Clear information about internal controls, segregation of duties, and staff access can improve underwriting outcomes.
Relevant cover combinations
Fidelity guarantee can be considered alongside office, business all risks, liability, and cyber protection where appropriate.
Support as controls evolve
As your business grows, handles more funds, or changes internal processes, cover can be reviewed to stay aligned.
How much does it cost?
Premiums depend on the size of the business, staff roles, money and stock handled, internal controls, claims history, and the limit of cover selected.
- Employee access and duties: Broader authority over cash, banking, stock, or accounting processes can increase underwriting scrutiny and cost.
- Internal controls: Separation of duties, audits, approvals, reconciliations, and oversight affect insurer appetite and pricing.
- Cover limits and prior losses: Higher indemnity limits or a history of dishonesty-related claims usually increase premium.
Frequently Asked Questions
Does fidelity guarantee cover every type of fraud loss?
Not necessarily. The wording, definitions, employee status, direct-loss requirement, and policy exclusions all matter.
Is this the same as cyber fraud cover?
No. Fidelity guarantee focuses on dishonest acts by employees, while cyber or crime-related products may address different external or digital fraud exposures.
Do insurers look at internal controls before quoting?
Yes. Internal controls, segregation of duties, audits, and access to funds or stock are usually important underwriting factors.
What information helps with a quote?
Prepare your staff structure, cash and stock exposure, internal controls, claims history, and the level of fidelity guarantee cover required.
Protect your business against employee dishonesty risk
Tell us about your internal controls, staff structure, and the type of direct loss exposure you want to insure.