FAQ – Fiduciary Liability Insurance
FAQ - Embezzlement Insurance
Here you’ll find answers to the most important questions.
1. General Information / Definition
What is fidelity insurance (VSV)?
- Fiduciary liability insurance (VSV) protects companies against potential financial losses resulting from wrongful acts committed by employees, other persons in positions of trust within the company, or outside third parties.
- Fidelity insurance often also covers computer misuse. This coverage includes all potential losses caused by employees using computer systems.
What are the benefits of fidelity insurance?
- Full compensation up to the agreed-upon insured amount, including consequential costs
- Protection against a wide variety of fraud-related losses
- Financial Protection for the Company in the Event of a Loss
- Reliable & Fast Compensation
- Discretion
- Risk Mitigation
Which companies need fidelity insurance?
According to representative surveys of German companies, one in three companies struggles with financial losses resulting from unauthorized or economically criminal acts committed by employees or other trusted individuals. The risks covered by the VSV can affect any company, regardless of industry or size. Nevertheless, the larger the company and the more subsidiaries it operates, the more important the VSV becomes.
2. Costs of fidelity insurance
How much does fidelity insurance cost?
The cost of fidelity insurance depends on several factors. These include, for example, the scope of coverage, the insured amount, the type and industry of the business, the number of employees and other trusted individuals, the company’s security policy, and, if applicable, the company’s history of prior claims. Our GFL experts would be happy to help you find the right insurance coverage for your company.
3. Terms of the Contract
What is covered under fidelity insurance?
In general, most providers offer a modular VSV structure. This means the policy can be tailored to your actual needs. The following situations, among others, can be covered:
- White-Collar Crime
Financial losses suffered by trusted individuals, for example due to:
- Intentional unlawful acts (e.g., fraud, theft, embezzlement, misappropriation, computer misuse, etc.)
- Liability to Third Parties Arising from a Willful Tort
- Breach of Confidentiality
- Willful Breach of Duty
Financial losses incurred by third parties, for example due to:
- “Fake President” – Fraud Involving the Use of a False Identity
- “Fake Identity” – Fraud Involving the Use of Someone Else’s Identity
- “Payment Diversion” – Fraud Involving the Redirection of Payment Flows
- Consequential costs (covered under the respective insurance coverage limit)
These include the following costs:
- to determine the amount of damage
- to pursue legal action and to defend against any claims by third parties
- to offset contractual penalties
Are cyberattacks on employees working from home also covered by fidelity insurance?
Yes, because even when working from home, the employee uses the company’s IT systems, which include the legally licensed software and hardware. This also applies if the employee uses their own PC or laptop while working from home.
Are external individuals who have access rights also covered under the insurance?
Yes, all individuals who have access to the company—such as cleaning staff, consultants, security guards, etc.—are included in the contract.
Can only gross negligence be insured?
Yes. In general, the act must be an intentional tort. Gross negligence may be covered; moderate and slight negligence are excluded.
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Here's what our customers say about us:
Insurance and Financing Coordinated with Each Other
“I appreciate the independent and professional support provided by GFL, and I’m happy to recommend them.” Andreas Bruthier, MHB
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Financial Consulting in a Growth Market
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Do you have any other questions?
Please feel free to contact us!
If you have any further questions about fidelity insurance, please feel free to contact us.
