Companies are not immune to fraud and theft. Many even invest millions of dollars in securing their assets and operations. However, in some cases, the company’s own employees commit these acts. This is when fidelity insurance comes in.
This type of business insurance coverage protects a company from financial losses due to an employee’s dishonesty or fraudulent actions. This is a crucial part of any risk management strategy. However, navigating the claims process can be complex.
What documentation is necessary to support a claim?
When filing a fidelity insurance claim, it’s crucial to provide detailed evidence. Make sure to:
- Document the fraudulent act with specifics about what occurred, when and who was involved
- Provide evidence of financial losses, such as bank statements, transaction records and audit reports
- Include relevant employment records of the individual involved, such as their role, access to company assets and any disciplinary history
- Demonstrate that your company has established policies to prevent fraud, showing that the incident was a breach rather than a systemic issue
It also helps to keep records of any communications related to the incident. Even emails or memos might provide context or evidence.
What happens if you receive a denial?
Fidelity insurance companies may deny a claim for various reasons. They may argue that there was a lack of clear proof linking the employee to the fraudulent act. Policies also often require prompt reporting of incidents. Delays in notifying your insurer may be a breach of policy terms. Insurance companies may also deny your claim if the act or the amount is beyond the scope of the policy.
The good news is that a company can appeal a denied fidelity insurance claim, especially if there is additional evidence or a valid reason to challenge the denial. The appeals process generally involves:
- Reviewing the insurer’s explanation for the denial
- Collecting any new information or documentation that supports your claim and addresses the denial reasons
- Drafting a detailed appeal letter that includes additional evidence and arguments for reconsideration
Appeals require careful preparation and strategic planning, so consider consulting with legal professionals. An attorney can provide guidance on the process and help ensure that your appeal is well-structured and persuasive.