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Need a second opinion on your corporate insurance profile?
Call AAIB
or email for a free review. |
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AAIB®
AFS Licence 229568
ABN 41 063 324 998
Level 2, 8 Thomas Street, Chatswood, 2067.
Tel: +61(2) 9904 7888
Fax: +61(2) 9904 7388
PO Box 773, Chatswood 2057.
info@aaib.com.au
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There is no lack of well known cases in which a single employee can cause a company multi-million dollars of losses, especially in the financial sector. However, according to KPMG’s Fraud 2006 study, it was the employees of non-financial companies that instigated the most costly frauds.
What type of coverage can you get?
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Theft of cash or other company properties |
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Paying purposely inflated invoices |
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Voiding cash registers |
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Paying to fictitious suppliers |
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Forgery on cheques or other documents |
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Kickbacks |
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Misuse of company properties |
Fidelity Guarantee Insurance is not a luxury
If your company have employees, such as cashiers, accountants, storekeepers etc, who are in constant contact with money, stock or other financially valuable assets, some of them may act dishonestly. It will cause your company losses of money and/or goods.
Moreover, such losses are not small. Out of the 196 samples in the KPMG report on Fraud, the most frequently found fraud was “false invoicing” and the average cost per incident was almost $400,000. Another single incident due to provision of fraudulent financial information, caused a loss of $5,000,000.
And even if the business finally discovered the fraud, it took an average of 300-400 days. And by then will they get all the money back?
That’s why Fidelity Guarantee insurance is not a luxury at all.
Common exclusions and limitations
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Loss from computer crime, virus, etc |
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Loss discovered later than the discovery period specified |
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Loss as a consequence of the fraud |
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Legal expenses |
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Cost of reproducing information in destroyed data |
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Loss of proof of any shortage in accounts, stock, etc. |
Is getting a Fidelity Guarantee insurance the only action required?
Definitely not. Insurance must be combined with a vigilant scheme of risk management controls to prevent a loss from actually happening. The insurance policy will only help minimize the loss but you will be much better off without suffering the loss (and the disruption and damage to your business) in the first place.
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Call AAIB today:
02-9904 7888 Email:info@aaib.com.au
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The information in this website is provided for Australian residents only and not for any person of any other country. |
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The information in this website has been prepared as general information only and it may not be complete or accurate for your purposes. |
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AAIB makes no representation or warranty of any kind as to the accuracy or completeness of the information or any part of it. |
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Furthermore, AAIB and its directors, officers, employees, consultants and associates do not accept any responsibility arising in any manner, including by reason of negligence, for errors and omissions and do not accept any responsibility for any loss or damage, however caused, as a result of any person relying on any information displayed in this website. |
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Copyright AAIB® 2008. Level 2, 8 Thomas St, Chatswood NSW 2067, T:+61(2)9904 7888 F:+61(2)9904 7388 info@aaib.com.au
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