This is also similar to a collection or group Policy with the difference that instead of using names, the “positions” is guaranteed for a specified amount, so that a change in the person holding the liability of the Insurers in respect of each position remains limited to the amount guaranteed for the position, irrespective of the number of persons acting in that position. Also, instead of a specified amount for each position, a single amount of guarantee for all positions may be ‘floated.’
Insurance Encyclopedia
Fidelity Guarantee Collective Policy
Where the entire staff or a number of selected individuals are to be covered a collective policy is issued. There are various types of Collective Policies:
Fidelity Guarantee Collective Policy (Blanket)
The Policy covers the entire staff without showing names or positions. Such policies are only suitable for an employer with a large staff and the organization to make adequate enquiries into the antecedents of his employees.
Fidelity Guarantee Collective Policy (Excess Floating)
This is a combination of a collective Policy and a floating Policy. An employer may safeguarded himself against loss of unforeseen amount by reason of defaults continuing for a long time y unusually ingenious methods of concealment by having a floating guarantee for any loss in excess of the individual amounts set out in the schedule.
Fidelity Guarantee Collective Policy (Floater)
The names and other relevant particulars in respect of individuals to be guaranteed are recorded in the schedule but the amount of guarantee is not so recorded. The amount of guarantee is floated over all the individuals to be covered. Each employee to be guaranteed or some or all of them, together, are covered for the amount so floated.
Fidelity Guarantee Commercial
A contract of Fidelity Guarantee guarantees that if the employer suffers any direct financial loss arising out of dishonesty, default, embezzlement, forgery, fraud, larceny on the part of the employee(s) insured, the Insurers shill indemnify the said loss to the employer within the limitations prescribed by the Policy.
Fidelity Guarantee Individual Policy
This type of policy is used where only one individual is to be guaranteed.
Fidelity guarantee insurance (suretyship insurance)
Commercial guarantees protect employers against financial loss from the dishonesty of employees. Local government guarantees operate similarly but also cover loss due to mistakes. Court bonds guarantee the performance of individuals appointed by the court to handle money or other assets. Government bonds guarantee the performance of individuals in a position of trust given by government departments or concerned with dutiable goods for whom a customs and excise bond is appropriate. See GUARANTEE/INSURANCE-GUARANTEE.
Fidelity Guarantee-Collective Policy-Named Employees
A Policy schedule which contains the names of employees of whom the guarantee is given with a note of duties of each employee. The amount of guarantee of each employee is inserted in the schedule against his name.
Fidelity insurance
A type of insurance which is designed to protect a firm from losses caused by the dishonest acts of its employees.