Get to Know Extensions: Adding Fidelity to Professional Indemnity

As an insurance broker, you are well aware of the risks faced by your clients, especially when it comes to employee theft. Your clients have invested significant time and resources into building their businesses, and it only takes one employee's dishonest act to cause financial devastation. That's why it's important to ensure that your clients have the right insurance coverage in place to protect against employee theft. This is where the fidelity extension comes in.

If your clients are professional service providers, such as architects, engineers, or accountants, they likely have professional indemnity insurance in place to cover loss or damage arising from claims of professional negligence. However, it's important to realise that not all professional indemnity insurance policies cover losses resulting from employee theft, fraud, or dishonesty.

That's where the fidelity extension comes in. By adding a fidelity extension to your clients' professional indemnity policy, they can have cover for direct financial losses resulting from employee dishonesty. This can include theft of money, securities, or property, as well as forgery or alteration of cheques and counterfeit currency.

It's important to understand that the fidelity extension only covers losses resulting from the dishonest or fraudulent acts of employees, and not contractors or third parties. Additionally, there are limitations and exclusions to the coverage that should be carefully reviewed with your clients.

Berkley Insurance Australia offers a fidelity extension as an add-on to its Miscellaneous Professions Professional Indemnity policy. The cost of the extension will depend on several factors, including the size of your clients' businesses and the level of coverage they require.

By recommending that your clients add the fidelity extension to their professional indemnity policies, you can provide them with the added protection they need to safeguard against employee theft. Not only will this help protect their financial stability, but it will also demonstrate your commitment to arranging comprehensive coverage and protecting their interests.

For more information about the fidelity extension or any of our other offerings please contact our local team.