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Fidelity Guarantee Coverage
Dec 4, 2023

What Is Fidelity Guarantee Coverage In Shopkeepers Package Policy?

Running a retail business is a challenging endeavour. Shopkeepers face numerous risks and uncertainties, both internal and external, which can threaten the financial stability of their establishments. One of the risks shop owners must address is the potential for employee theft or dishonesty. To safeguard against this risk, shopkeepers can opt for Fidelity Guarantee Coverage as part of their Shopkeepers Package Policy. Let’s explore what Fidelity Guarantee Coverage is, why it's important for shopkeepers, and how it can provide peace of mind in an ever-changing retail landscape.

What is Fidelity Guarantee Coverage?

Fidelity Guarantee Coverage is a component of a shopkeeper insurance policy providing protection against financial losses incurred due to the fraudulent or dishonest acts of employees. This coverage is designed to address situations where employees steal, embezzle, or engage in fraudulent activities resulting in financial harm to the insured shop or store. Claims are subject to terms and conditions set forth under shopkeeper insurance policy.*#

Key Features of Fidelity Guarantee Coverage

These key features help you understand the benefit of purchasing this general insurance policy:
  • Protection Against Employee Fraud

The coverage primarily protects the shopkeeper from financial losses resulting from dishonest actions or fraud committed by their employees. These actions can include theft, embezzlement, forgery, misappropriation, or any other fraudulent activity. Claims are subject to terms and conditions set forth under shopkeeper insurance policy.*
  • Customizable Coverage

Shopkeepers can customize their coverage based on their specific needs. The coverage can be tailored to address the unique risks and financial exposures faced by the business. Claims are subject to terms and conditions set forth under shopkeeper insurance policy.*
  • Affordability

Fidelity Guarantee Coverage is typically cost-effective, making it accessible to small and medium-sized shop owners. Premium rates are influenced by factors like the number of employees covered, the industry, and the level of protection required. Claims are subject to terms and conditions set forth under shopkeeper insurance policy.*
  • Peace of Mind

Having this coverage in place provides shopkeepers with a certain peace of mind, as they can think of themselves being financially protected against the risk of employee dishonesty. It allows them to focus on growing their business rather than worrying about internal threats.

Why is Fidelity Guarantee Coverage Important for Shopkeepers?

The following reasons might make you consider purchasing the policy to safeguard your business:
  • Employee Trust

Shopkeepers often rely on their employees to manage day-to-day operations, handle cash, and maintain inventory. While trust is essential, it is crucial to acknowledge that dishonesty may come into play. Fidelity Guarantee Coverage helps in establishing trust while safeguarding against potential breaches.
  • Financial Security

Employee theft and dishonesty can result in significant financial losses. For small and medium-sized shop owners, these losses can be devastating. Fidelity Guarantee Coverage acts as a financial safety net, ensuring that the business can recover from such losses.
  • Enhanced Risk Management

Proactively addressing the risk of employee dishonesty through insurance demonstrates responsible risk management. It can also serve as a deterrent to employees who may contemplate fraudulent activities, knowing they will be held accountable.
  • Business Continuity

Employee theft can disrupt business operations and lead to financial instability. Fidelity Guarantee Coverage ensures the shop can continue to function even in the face of internal theft or fraud, minimizing downtime.

Inclusions And Exclusions

It is important to understand the inclusions and exclusions of this MSME insurance policy to avoid any confusions at the time of filing a claim. Claims are subject to terms and conditions set forth under shopkeeper insurance policy.* Inclusions*:
  • Theft committed by your employees

One could steal money, documents or other materials from your inventory and sell them outside for a profit.
  • Fraud committed by your employees

Any of your employees could inflate the amount on a bill to get extra money, or take money under the pretext of business expenses, but use it for personal expense.
  • Forgery

Forgery is one of the most common type of crime committed by employees. In forgery, an employee may fake having the authority to take business decisions. This can cause financial losses where large transactions are involved. Exclusions*:
  1. Discovery of fraud committed by an employee whose termination occurred greater than the period of 1 year
  2. Filing more than one claim against the same employee
  3. Instances where your oversight as an employer was required but not provided
  4. Loss suffered in stocks/securities due to market fluctuation


Fidelity Guarantee Coverage is an essential component of a Shopkeepers Package Policy, helping shopkeepers protect their businesses against employee theft and dishonesty. In a retail landscape filled with uncertainties, this coverage ensures financial security and peace of mind. By addressing the risk of employee fraud proactively, shopkeepers can focus on delivering exceptional services to their customers while growing their businesses.   *Standard T&C Apply #Visit the official website of IRDAI for further details Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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