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Employee Dishonesty Insurance in India

A comprehensive, India-first guide for businesses that want to shield leadership, secure assets, and plug financial vulnerabilities before they derail growth. Bookmark this before your next board review.

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Introduction to Employee Dishonesty Insurance

Every business runs on trust. Employers trust employees with cash, financial systems, inventory, data, vendor payments, access to bank accounts and confidential information. But when this trust is broken—through theft, forgery, embezzlement or digital fraud—the financial loss can be significant and often difficult to recover.
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Employee Dishonesty Insurance, also known as Fidelity Insurance or Fidelity Guarantee Insurance, protects businesses from financial losses caused by fraudulent or dishonest acts committed by employees in the course of their duties.
This type of insurance does not cover mistakes or negligence—it specifically protects against intentional acts of fraud or theft carried out by employees for personal gain.

Table of contents

What is Employee Dishonesty Insurance?

Most employers rely on internal controls, audits, strong HR practices or employment contracts to prevent fraud. However, employee fraud is often deliberate, planned and can go undetected for months or even years.

Some common forms of internal fraud include:

  • An accountant misdirecting company payments into a personal bank account
  • A cashier or store employee stealing cash or digital payments
  • A payroll executive creating fake employee accounts to transfer salaries
  • A procurement officer taking commissions from vendors and inflating invoices
  • An inventory manager diverting raw materials to external buyers

A research study by the Association of Certified Fraud Examiners (ACFE) found that companies lose approximately 5% of their annual revenue to occupational fraud globally. In India, internal fraud cases are most common in sectors like retail, manufacturing, logistics, BFSI, and startups handling vendor and payroll payments.

What exactly does Employee Dishonesty Insurance cover?

It covers direct financial loss to the employer due to:

  • Theft of money, securities or assets by an employee
  • Forgery of cheques, bank drafts or financial documents
  • Embezzlement or fraudulent electronic fund transfers
  • Misappropriation of company-owned goods, inventory or cash
  • In some policies, theft of a client’s money or property by an employee (optional extension)

The insurer reimburses the business once the fraud is discovered, investigated, and proven according to policy conditions.

In simple terms

Employee Dishonesty Insurance is a financial safety net for businesses when an employee intentionally causes a financial loss through fraudulent acts. It does not assume employees are untrustworthy—it recognises that financial fraud is a real operational risk, even in small or trusted teams.

Why Is Employee Dishonesty Insurance Important?

Trust is essential in business—but trust alone cannot prevent financial loss. Internal fraud is often unexpected, carried out by employees who understand the company’s systems, and can remain undetected for months. When it finally surfaces, the business may lose not just money, but also credibility, customer confidence and investor trust.

Employee Dishonesty Insurance exists because internal fraud is more common, more costly and more difficult to recover than most businesses expect.

Why this risk is often underestimated

Most organisations believe employee fraud “won’t happen here.” This belief is understandable, especially in small teams or family-run businesses. However, industry data shows otherwise:

  • The Association of Certified Fraud Examiners (ACFE) reports that companies lose around 5% of their revenue every year to employee fraud and occupational theft.
  • In India, employee fraud contributes to a large share of reported corporate frauds, especially in sectors like retail, logistics, finance, manufacturing and startups handling vendor payments or cash transactions.
  • More than 50% of internal fraud cases last over 6 months before being detected (ACFE Occupational Fraud Report 2022).

Internal fraud is usually committed by employees in positions of trust—such as accountants, finance executives, store managers, or procurement officers—who know how to bypass controls and hide irregularities.

Common types of employee dishonesty

Type of Fraud Example
Embezzlement Accountant transfers company funds to a personal bank account
Payroll Fraud HR/payroll adds fake employees and withdraws salaries
Forgery Employee forges signatures on cheques or financial documents
Inventory Theft Warehouse staff divert raw materials or finished goods
Digital Fraud Employee makes unauthorised UPI/NEFT transfers
Vendor Kickbacks Procurement head inflates invoices and takes personal commission

Why internal controls are not enough

Companies use audits, maker-checker approvals and CCTV surveillance. Yet fraud occurs because:

  • The fraudster often understands these systems better than others.
  • Small or growing companies may not have strict audit mechanisms.
  • Losses are discovered only after the employee leaves or finances are reviewed.
  • Legal recovery from the employee is slow and uncertain.

How Employee Dishonesty Insurance helps

Employee Dishonesty Insurance does not replace strong internal controls. Instead, it acts as a financial safety net when controls fail. If fraud is discovered, the insurer reimburses the company for the verified financial loss, subject to policy terms.

This helps businesses:

  • Recover stolen money or assets
  • Avoid cash flow disruption
  • Protect investor confidence and financial statements
  • Continue business without legal or financial strain on owners

What Does Employee Dishonesty Insurance Cover?

Employee Dishonesty Insurance (also called Fidelity Insurance or Fidelity Guarantee Insurance) covers financial losses that a business suffers due to fraudulent or dishonest acts committed by its employees. For a claim to be valid, the loss must be intentional, caused by the employee’s act of dishonesty, and result in direct financial loss to the employer.

Core Coverage: What Is Protected Under This Policy?

1. Theft or Embezzlement of Money

Covers loss of cash or funds stolen by an employee from office premises, bank accounts or during financial transactions.

Example:
A finance executive transfers small amounts to a personal account over several months.

2. Forgery or Alteration of Financial Documents

Covers cases where employees forge signatures or alter cheques, bank drafts, invoices or payment instructions to divert funds.

Example:
An employee issues forged cheques in the company’s name and encashes them.

3. Misappropriation of Company Assets

Covers theft or misuse of company-owned movable property such as inventory, raw materials, stock, office equipment or products.

4. Fraudulent Online or Digital Transactions

Certain policies also cover illegal digital fund transfers made by employees via internet banking, NEFT, RTGS or UPI, if intentional and unauthorised.

5. Employee Fraud Affecting Client Funds (Optional Extension)

For service companies handling customer money (e.g., travel agencies, accounting firms), some policies allow coverage for losses caused by employees stealing a client’s money while performing their job.

Policy Formats: Types of Coverage

Policy Type Description Suitable For
Individual Policy Covers one named employee Cashiers, accountants
Collective Policy Covers selected employees listed in the policy Finance or procurement teams
Blanket Policy Covers all employees without naming them SMEs, startups, retail chains
Position-Based Policy Covers a specific role instead of a person “Head of Finance” or “Store Manager”

How Compensation Works

  • Loss is discovered and reported to the insurer within the policy period or discovery period
  • The company must provide proof: internal audit reports, transaction details, bank records, FIR (if applicable)
  • After investigation, the insurer reimburses the financial loss up to the sum insured (policy limit)

Important Notes

  • Only direct financial loss is covered — not reputational damage or future profit loss
  • The fraudulent act must be committed intentionally and not by accident or error
  • Some insurers have a time limit called a “discovery period”, meaning losses must be detected within a specified time after the policy expires

In short

Employee Dishonesty Insurance protects a business from financial loss caused by internal fraud — such as theft, embezzlement, forgery or digital fund misuse — committed by trusted employees.

What Is Not Covered by Employee Dishonesty Insurance? (Exclusions)

While Employee Dishonesty Insurance protects businesses against financial losses caused by employee fraud or theft, it does not cover every situation involving money or asset loss. The policy is designed to respond only to intentional and dishonest acts committed by employees in the course of employment — and only within clearly defined limits.

Understanding exclusions is important to avoid claim disputes and to set the right expectations from the insurance.

1. Fraud by Business Owners, Directors or Partners

The policy only covers loss caused by employees. It does not cover fraud or theft committed by:

  • Business owners or promoters
  • Managing directors or partners in a partnership firm
  • Family members or beneficial owners acting in a managerial capacity

If someone who owns or controls the business commits the act, it is not considered “employee dishonesty”.

2. Errors, Mistakes or Accounting Irregularities (Without Fraudulent Intent)

Losses caused by negligence, errors in bookkeeping, or poor record-keeping are not covered. The policy only covers deliberate fraud, not mistakes.

Example:
 If an accounts executive incorrectly enters a payment leading to financial loss — this is not covered, as there is no dishonest intent.

3. Cybercrime by External Hackers or Third Parties

If money is stolen due to hacking, phishing, ransomware or UPI/online fraud by outsiders, it is not covered under Employee Dishonesty Insurance.
This falls under Cyber Insurance or Crime Insurance, unless the fraud is committed by an employee.

4. Losses Detected After the Policy Period (Without Discovery Clause)

If fraud happened earlier but is discovered after the policy has expired, insurers may not pay unless the policy includes a specific discovery period or extended reporting period.

5. Known or Suspected Employees Not Reported to the Insurer

If the employer knew about suspicious activities or past misconduct but failed to remove or report the employee, future related losses may not be covered.

6. Losses That Cannot Be Quantified or Proven

Employee Dishonesty Insurance only covers direct, measurable financial loss. It does not cover:

  • Loss of future profit
  • Reputational damage or loss of clients
  • Investigation costs (unless explicitly covered)
  • Losses without proper audit or documentary evidence

Quick Reference – Covered vs Not Covered

Covered Not Covered
Intentional theft by employee Fraud by owner/director
Embezzlement of company funds Mistakes or poor accounting
Forgery of cheques or transfers Cybercrime by outsiders
Misappropriation of cash or inventory Loss discovered after policy expiry (without discovery clause)

In summary

This policy protects against internal fraud — not operational mistakes, cyber theft, business losses or employee negligence. Knowing the exclusions helps businesses build stronger internal controls and choose additional cover if needed.

Who Needs Employee Dishonesty Insurance?

Any organisation that employs people to handle money, accounts, payments, inventory, data or financial decisions is exposed to internal fraud risk. Employee Dishonesty Insurance is not just for large corporations — in fact, small and mid-sized businesses are often more vulnerable because they operate on trust, have limited internal controls, and rely on a few individuals to manage finances.

This insurance becomes useful wherever trust and access to financial systems intersect.

Businesses That Benefit the Most

1. Startups and Small Businesses

  • Limited separation of roles — founders often depend on one person to manage accounts, payroll or vendor payments.
  • Fraud may go unnoticed for long due to absence of internal audit teams.
  • A single fraud incident can disrupt cash flow and investor confidence.

2. Companies Handling Cash, Digital Payments or Inventory

Industries with daily transactions and physical inventory are more prone to employee theft:

  • Retail stores and supermarket chains
  • Restaurants, hotels and hospitality businesses
  • Logistics and warehouse companies
  • Manufacturing units and export/import businesses

Examples include cash theft, warehouse pilferage, fuel misuse or diversion of raw materials.

3. Finance, Accounting and Payroll Departments

These functions come with access to banking systems, company accounts and salary transfers. Employee Dishonesty Insurance is useful for:

  • Accounting teams responsible for vendor payments
  • Payroll managers handling employee salaries and reimbursements
  • Finance controllers authorising NEFT, RTGS or UPI transfers

4. Professional Service Firms and Consultants

Some firms manage money or confidential data on behalf of clients. Typical examples:

  • Chartered Accountants (handling tax payments and audits)
  • Company secretaries, compliance officers
  • Travel agencies collecting client funds for bookings
  • Real estate brokers handling deposits
  • Insurance and mutual fund distributors

If an employee commits fraud using client money, the firm may be held liable.

5. Mid-sized and Large Enterprises

Larger organisations may have internal audit teams, but fraud still occurs. In many past cases, fraud lasted for months or years before being detected. Pilferage, vendor kickbacks, falsified invoices and fake employee salaries are common examples.

Who within the company is covered?

Depending on the policy type:

  • All current employees (blanket policy)
  • Specific employees in finance, stores, procurement or operations
  • People in positions of trust (cashiers, accountants, branch managers)

In summary

Any business that employs people to manage money, authorise payments, handle inventory or access financial systems can face internal fraud. Employee Dishonesty Insurance provides a safety net when trust is broken and financial loss occurs.

Real Examples and Claims Scenarios

Internal fraud rarely looks dramatic on the surface. Most of the time, it starts small, continues quietly, and comes to light months or years later—often during internal audits or vendor reconciliations. This section explains real-world situations where Employee Dishonesty Insurance could help a business recover financial losses.

Case Study 1: Accountant Diverts Vendor Payments

Industry: Manufacturing Company
What happened:
A junior accountant added his own bank account in place of vendor accounts for small-value payments. This continued for 18 months, over which a total of ₹22 lakh was transferred illegally.

Discovery:
Detected during an internal audit and vendor confirmation exercise.

Insurance response:
Under Employee Dishonesty Insurance, the company submitted proof of transactions, audit documents and filed an FIR. The insurer reimbursed the verified financial loss, minus the deductible.

Case Study 2: Payroll Fraud Using Fake Employees

Industry: Logistics and Warehousing
What happened:
An HR/payroll executive created fake employee profiles and processed salaries to her own bank account. Fraud continued for 10 months before detection.

Loss amount:
 ₹12 lakh in falsified salary payments.

Insurance response:
Claim was approved because the fraud was intentional, committed by a full-time employee, and reported during the policy period.

Case Study 3: Employee Steals Cash from Retail Store

Industry: Retail Chain / Supermarket
What happened:
A store cashier skimmed small amounts of cash daily from the billing counter. CCTV eventually confirmed theft.

Loss amount:
Around ₹3–5 lakh over several months.

Outcome:
Since this was direct theft by an employee, the claim qualified under the policy’s cash-handling cover.

Case Study 4: Inventory Theft and External Resale

Industry: FMCG / Distribution Business
What happened:
A warehouse in-charge and sales rep were secretly selling company goods to local shops without billing them officially and pocketing the cash.

Loss amount:
Unbilled inventory worth ₹15 lakh.

Did insurance cover it?
Yes, under misappropriation of company-owned goods—but only because stock records and investigation reports supported the claim.

Case Study 5: Digital Funds Transfer Fraud

Industry: Startup (Technology Services)
What happened:
An employee with access to corporate net banking credentials transferred client payments to his personal UPI account.

Action taken:
Company filed a cybercrime FIR. Employee was arrested. Loss was claimed under Employee Dishonesty Insurance, not Cyber Insurance, because the fraud was internal.

Key Insight

Most employee fraud cases are long-term, gradual and done by trusted staff. Detection is often delayed. Insurance helps recover direct financial loss—but only when fraud is proven and supported by documentation.

Types of Employee Dishonesty Insurance Policies

Employee Dishonesty Insurance is not a single standard policy. Insurers offer multiple formats depending on how many employees are to be covered, what roles they handle, and how much financial responsibility they hold. Businesses can choose from individual coverage to organisation-wide protection.

1. Individual (Named Employee) Policy

  • Covers only one specific employee, named in the policy document.
  • Used when a single employee handles cash, finances, banking or high-risk tasks.
  • Common for roles like cashiers, accountants, branch managers, collection agents.
  • If any other employee commits fraud, the policy will not respond.

Best for: Small businesses with one finance-in-charge or trusted cashier.

2. Collective (Named Employees) Policy

  • Covers a group of employees listed by name or employee ID.
  • Ideal for finance teams, accounts departments, store managers, procurement teams etc.
  • More cost-effective than individual policies if multiple employees are involved.

Limitation: New employees need to be added manually to stay covered.

3. Blanket Policy (All Employees Covered)

  • Covers all employees without naming anyone individually.
  • Employees at all levels — from junior staff to managers — are covered automatically.
  • Suitable for SMEs, startups, retail chains, manufacturing units and large organisations.

Advantages:

  • No need to update names when employees join or leave.
  • Covers unknown risks, including fraud from unexpected people.

Note: Premium is higher because the risk pool is larger.

4. Position-Based or Role-Based Policy

  • Instead of naming a person, the policy covers a job position (e.g., “Senior Accountant,” “Branch Cashier”).
  • If the person leaves and someone else takes that position, coverage automatically shifts to the new employee.
  • Useful for roles with high financial trust and frequent employee turnover.

5. Client Money Fidelity Cover (Optional Extension)

  • Protects the business if an employee steals money or assets belonging to a client — not just the employer.
  • Relevant for sectors like CA firms, travel agencies, financial advisors, logistics companies and payroll processors.

Comparison Snapshot

Policy Type Who is Covered? Best For
Individual One specific person Cashiers, accountants
Collective Selected employees Finance or procurement teams
Blanket All employees SMEs, retail chains, factories
Position-Based Role instead of person Branch managers, payroll head
Client Money Add-On Client assets stolen by employee Agencies, consultants

Cost and Premium Factors for Employee Dishonesty Insurance

The cost of Employee Dishonesty Insurance (also called Fidelity Insurance) depends on how many employees are covered, the level of financial risk they handle, and the sum insured chosen by the employer. Unlike health or vehicle insurance, pricing is not fixed — insurers evaluate how likely fraud is within your business and what the potential loss could be.

For small businesses, premiums may start as low as ₹5,000–₹10,000 per year. For companies with high cash/inventory handling or large finance departments, premiums can range from ₹25,000 to a few lakhs annually.

Key Factors That Decide the Premium

1. Number of Employees Covered

  • Named policies (specific employees) are cheaper than blanket policies covering all employees.
  • More employees = higher risk exposure = higher premium.

2. Sum Insured (Coverage Amount)

This is the maximum amount the insurer will pay if fraud is proven.

Typical ranges:

Business Type Common Sum Insured
Small retail shop/startup ₹5–₹10 lakh
SME or consulting firm ₹10–₹25 lakh
Manufacturing, logistics ₹25–₹50 lakh
Large enterprises or chains ₹50 lakh–₹1 crore or higher

Higher sum insured = higher premium.

3. Business Type and Risk Exposure

Industries with frequent handling of cash, stock, digital payments or vendor transactions face greater fraud risk. Premiums are higher for:

  • Retail, hospitality, warehouses, logistics
  • CA firms, payroll services, financial firms
  • Manufacturing units with inventory and procurement teams

Service-based IT or consulting firms may pay lower premiums if there’s minimal physical or cash handling risk.

4. Internal Control Systems

Insurers check if your business has:

  • Segregation of duties (maker-checker system)
  • Regular internal/external audits
  • Dual authorization for payments
  • Inventory tracking systems

Stronger controls can reduce premium rates.

5. Past Fraud or Claims History

  • If a company has experienced employee fraud earlier, the insurer may raise the premium or exclude that employee/department.
  • Clean financial history = better pricing.

6. Add-ons and Discovery Period

Optional add-ons that increase premium include:

Add-On Premium Impact
Client money coverage +10–15%
Extended discovery period +5–12%
Coverage for temporary/contract workers +5–10%
Worldwide coverage (multinational firms) Higher premium or custom pricing

Is it expensive for small businesses?

Not necessarily. Even a ₹10–₹15 lakh policy can cost less than ₹10,000 per year. Considering that employee fraud can run into lakhs or crores, the cost of the policy is relatively small.

How to Buy Employee Dishonesty Insurance (Step-by-Step Guide)

Buying Employee Dishonesty Insurance is not complicated, but it does require clarity on employee roles, financial exposure and the insurer’s documentation process. This step-by-step guide explains how startups, SMEs and large organisations can purchase the policy correctly and ensure smooth claims if fraud occurs.

Step 1: Identify Who Needs to be Covered

Start by mapping employees who handle financial transactions, sensitive data or inventory. This could include:

  • Accountants and finance executives
  • Cashiers, branch managers or collection agents
  • Payroll and HR staff managing employee salaries
  • Inventory/warehouse managers
  • Procurement and vendor payment teams

Depending on your structure, you can choose individual, group or company-wide (blanket) cover.

Step 2: Decide the Sum Insured

This is the maximum amount the insurer will pay in case of proven fraud.
Choose the sum insured based on:

  • Total funds or inventory handled by employees
  • Monthly cash transactions or payment volume
  • Average salary or vendor payout exposure
  • Business size and financial capacity

Example: An SME may choose ₹10–₹25 lakh cover. A large company with multiple branches may opt for ₹50 lakh–₹1 crore or more.

Step 3: Provide Required Documentation

Insurers typically ask for:

  • Business registration details
  • Employee strength and roles
  • Internal financial control processes (maker-checker, audits, authorisations)
  • Previous fraud/claim history, if any
  • Audited financial statements (optional in small policies)

Step 4: Compare Multiple Insurer Quotes

While evaluating policies, compare based on:

Comparison Factor Why It Matters
Sum insured Maximum payout for fraud
Type of policy Named, blanket, or position-based
Discovery period Time allowed to detect fraud after policy expiry
Deductible Amount employer must pay before claim starts
Exclusions Limits that can reject claims
Add-ons Client money cover, temp workers, global protection

Step 5: Purchase and Policy Issuance

After finalising terms and premium:

  • Policy is issued digitally with coverage certificate
  • Insured employees or positions are mentioned (depending on format)
  • Policy period begins, typically for one year

Step 6: Reporting a Fraud or Claim

If fraud is discovered:

  1. Inform insurer immediately (within 24–48 hours, depending on policy)
  2. File an FIR or internal fraud report (if required)
  3. Provide bank statements, audit proof, employee details
  4. Insurer investigates and reimburses financial loss, subject to terms

In summary

Choose the right employees, determine coverage wisely, document your controls, and report losses on time — this ensures the policy protects you when trust is broken inside the organisation.

Frequently Asked Questions (FAQs) on Employee Dishonesty Insurance

1. What is Employee Dishonesty Insurance in simple words?

It is an insurance policy that protects a business from financial losses caused by fraudulent activities by its employees — such as theft, embezzlement, forgery or misuse of company funds or assets.

2. Is Employee Dishonesty Insurance the same as Fidelity Insurance?

Yes. Employee Dishonesty Insurance, Fidelity Guarantee Insurance and Fidelity Insurance are different names for the same policy. All cover internal fraud committed by employees.

3. Does it cover fraud by business owners or directors?

No. It only covers dishonest acts committed by employees. Fraud by business owners, directors or partners is excluded because they are not considered “employees” under policy terms.

4. Does this insurance cover mistakes, accounting errors or negligence?

No. It only covers deliberate, dishonest acts. Losses due to human error, miscalculation, or poor bookkeeping are not payable under this insurance.

5. Is cyber fraud or hacking covered?

Only if the fraud is committed by an employee (for example, an employee transferring money digitally to their own account). External hacking, phishing or ransomware attacks by outsiders are covered under Cyber Insurance, not this policy.

6. Does it cover temporary staff, contractual workers or interns?

Most standard policies cover only permanent employees on payroll. However, businesses can add contractual staff, outsourced professionals or interns if declared to the insurer at policy issuance.

7. What is a “discovery period” in this insurance?

It is the time allowed to discover and report a fraud after the policy expires or the employee resigns. For example, a 12-month discovery period means fraud discovered within 12 months after policy expiry is still covered.

8. Is an FIR or police complaint mandatory for a claim?

It depends on the insurer and the nature of fraud. For large financial losses or criminal activity, insurers often require an FIR. For small internal frauds with clear audit proof, some insurers may settle without a police report.

9. Can a claim be rejected? Why?

Yes. Common reasons for claim rejection include:

  • Fraud was known earlier but not reported
  • No proof or documentation of loss
  • Fraud was done by an owner, director or partner
  • Loss was discovered after the allowed discovery period
  • Fraud was not deliberate (i.e., it was an accounting mistake)

10. Is this insurance useful for small businesses or startups?

Yes. In fact, smaller businesses are more at risk because they have fewer internal controls and rely heavily on trust. A single fraud incident can cause major financial disruption — and this policy helps recover losses.

Why Choose Plum for Employee Dishonesty Insurance

Employee Dishonesty Insurance is most effective when it is easy to set up, clearly understood by business owners, and reliable at the time of a claim. Plum does not issue the policy itself — it works with IRDAI-approved insurers — but it simplifies how businesses buy, manage, and claim under this insurance.

1. Works With Trusted Insurers

Plum partners with leading insurers such as ICICI Lombard, HDFC ERGO, Bajaj Allianz, Tata AIG, Reliance General, and others who underwrite Employee Dishonesty (Fidelity) policies. This ensures:

  • Legal compliance under IRDAI regulations
  • Choice of multiple plans and pricing options
  • Customisation based on company size, risk and employee roles

2. Digital Policy Setup and Faster Issuance

With traditional brokers, fidelity policy issuance often involves paperwork and weeks of coordination. Plum streamlines this process with:

  • Online proposal and employee declaration forms
  • Digital sharing of bank details, audit reports and employee roles
  • Policy issuance in 2–5 working days, depending on risk profile and insurer approval
  • A downloadable digital policy certificate for audits, banking, or investor compliance

3. Tailored Coverage Based on Employee Roles and Business Type

Different roles carry different levels of financial risk. Plum helps businesses choose the right format:

Business Need Suitable Policy Type
One person handles cash/accounts Individual/Nominated Employee Cover
Finance or warehouse team at risk Collective or Position-Based Cover
Entire workforce protection for SMEs/startups Blanket Fidelity Cover
Employees handling client money Client Money Extension Add-On

4. Transparent Comparison Before Buying

Instead of focusing only on premium, Plum helps organisations compare:

Decision Factor Why It Matters
Sum insured Maximum payout per fraud incident
Deductible Amount employer must pay before insurance applies
Discovery period How long fraud can be reported after it occurs
Exclusions Conditions where claims may be denied
Client money coverage Needed for agencies, CA firms, payroll processors

5. Claim Assistance When Fraud Happens

When internal fraud is detected, businesses are often unsure where to start. Plum helps by:

  • Guiding how to immediately notify the insurer (mandatory to avoid rejection)
  • Assisting in collecting required proofs — audit findings, emails, transaction logs, CCTV, FIR (if needed)
  • Coordinating with the insurer for claim processing and documentation
  • Helping businesses understand what is payable and what isn’t

While the final decision rests with the insurer, proper reporting and documentation increases the chances of a successful claim.

In Summary

Plum does not change the insurance product—it improves how businesses access it, understand it, and use it during a crisis. With digital onboarding, customisable plans, verified insurers, and structured claim support, it makes Employee Dishonesty Insurance more practical for startups, SMEs and larger enterprises.

Protect your business with Plum.

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