Fidelity guarantee policies, such as commercial guarantees, include a clause requiring the employer to assist the insurers in bringing a civil action in the name of the insured employer for recovery of the loss. The use of the term ‘prosecution clause’ has been criticised as it normally relates to criminal proceedings.
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A clause in an insurance policy covering loss by dishonesty which obliges the insured, if so required by the insurer, to prosecute the person alleged to have caused the loss.