Crime & Fidelity Insurance
Crime & Fidelity Insurance protects a business against direct financial loss from fraud, theft and employee dishonesty. Fidelity guarantee cover responds when your own staff embezzle money, steal stock or forge documents, while broader commercial crime cover extends to outside fraud such as forgery, counterfeit currency, funds transfer fraud and theft of money on premises or in transit. It reimburses the loss the business actually suffers, up to the policy limit.
What it is
Fidelity guarantee insurance is a long-standing cover in India that protects an employer against dishonest acts by employees: embezzlement of funds, misappropriation of cash or stock, and forgery committed for personal gain. It can be written for named employees, for specific positions such as cashiers and storekeepers, or on a blanket basis covering the whole workforce.
Commercial crime policies build on this base and add protection against outsiders: loss of money and securities from your premises or in transit, forgery of cheques and instruments, counterfeit currency accepted in good faith, and computer or funds transfer fraud. Because these losses often surface months later during audits or reconciliations, the policy's discovery provisions, how long after the act a loss can be reported, are a critical part of the wording.
Who needs it
Any business where people touch money, payments or stock carries this exposure: retail chains and jewellers handling daily cash, NBFCs and financial services firms, logistics companies moving goods and collections, and manufacturers with valuable inventory. Growing SMEs are especially vulnerable when a single accountant or manager controls payments end to end with little oversight. Companies whose finance teams make regular digital transfers face rising payment fraud risk, and businesses that collect cash through field staff or franchisees have exposure that standard property policies simply do not address.
What's covered
- Direct financial loss from employee theft, fraud, embezzlement and misappropriation
- Forgery or alteration of cheques, drafts and other financial instruments
- Loss of money and securities on your premises, including from safes and tills
- Loss of money in transit, such as cash being carried to or from the bank
- Counterfeit currency accepted in good faith during business
- Computer fraud and fraudulent electronic funds transfers, per policy wording
- Cover on a named-employee, position-based or blanket workforce basis
- Costs of investigating and establishing a covered loss, where the policy includes them
Typically not covered
- Losses discovered after the discovery period stated in the policy
- Indirect and consequential losses such as lost business or reputational damage
- Dishonest acts by directors, partners or owners of the business itself
- Inventory shortages found only through stock-taking, without proof of a dishonest act
- Losses caused by an employee the business already knew to have been dishonest
- Trading losses and genuine errors of judgment made without dishonest intent
Why buy it through Assurmate
Covers the risk audits find too late
Employee fraud typically runs quietly for months before an audit catches it. The policy reimburses the accumulated direct loss instead of it landing on your P&L.
Protection beyond your own staff
Crime cover extends to outside forgery, counterfeit notes and fraudulent transfers, threats no property or liability policy responds to.
Flexible basis of cover
Insure named individuals, high-risk positions like cashiers and storekeepers, or the entire workforce on a blanket basis as the business grows.
Confidence to delegate
Owners can hand over cash handling, banking and payment authority to staff knowing a dishonesty loss will not be existential.
Free comparison across 75+ insurance partners
Crime wordings differ meaningfully on discovery periods and fraud definitions. As a trusted insurance advisory we compare plans across 75+ insurance partners and explain the differences plainly.
Support when a claim gets sensitive
Fraud claims involve evidence, FIRs and sometimes ongoing employees. Our team guides you through notification and documentation so the claim stays on track.
Optional add-ons
- Social Engineering Fraud Cover. Extends protection when an employee is deceived into transferring funds through impersonation or fake payment instructions, offered by select insurers.
- Third-Party Computer Fraud Extension. Broadens cover for losses caused by outsiders manipulating your computer systems to steal funds or property.
- Extended Discovery Period. Lengthens the window after the policy ends within which a loss can be discovered and reported, valuable given how slowly fraud surfaces.
- Audit and Investigation Costs. Covers the accountant and investigator fees needed to quantify and prove a covered loss.
How to buy through us
- 1
Share your business profile
Tell us your industry, cash and stock handling patterns, employee count and internal controls so we can gauge your exposure.
- 2
Compare tailored quotes
We compare fidelity and crime wordings from 75+ insurance partners, highlighting differences in discovery periods, definitions and limits.
- 3
Choose the right basis of cover
We help you decide between named, position-based or blanket cover and the right sum insured, and answer every question before you commit.
- 4
Get covered and stay supported
We complete the proposal and issue the policy, then support you at renewal and through any claim, however sensitive.
Crime & Fidelity Insurance questions
The things people ask us most about this cover.
Fidelity guarantee covers dishonest acts by your own employees, such as embezzlement or theft of stock. Commercial crime insurance includes fidelity cover and adds losses caused by outsiders, like forgery, counterfeit currency and fraudulent funds transfers. Which you need depends on where your real exposure lies.
Under a commercial crime policy, yes: forgery of instruments, counterfeit notes accepted in good faith, computer fraud and fraudulent transfer instructions are typically covered per the policy wording. A pure fidelity guarantee policy, by contrast, responds only to acts of employees.
You need to establish a direct financial loss from a dishonest or fraudulent act, usually through internal records, audit findings and, in employee cases, often an FIR or police complaint. Insurers do not pay for unexplained shortages found only in stock-taking, which is why documentation matters.
Named or position-based cover suits businesses where risk concentrates in a few roles like cashiers and storekeepers. Blanket cover suits larger or fast-growing teams where tracking individuals is impractical. Premium and underwriting differ, so the right answer depends on your structure.
No, and the two complement each other. Crime insurance covers direct theft of money, including some electronic fraud. Cyber insurance covers data breaches, ransomware, system restoration and liability to third parties whose data is compromised. Businesses with digital payment flows often need both.
Discovery periods, fraud definitions and exclusions vary significantly between insurers and decide whether a claim is paid. Our IRDAI-certified advisors compare plans across 75+ insurance partners, explain the fine print in plain language for free, and support you fully at claim time.
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