Course Overview

Fidelity coverage is the part of a commercial crime program that protects an employer against losses caused by its own employees, and the claims it produces look different from the property work most adjusters handle day to day. The loss was caused on purpose, by someone the insured trusted, and it was usually concealed, so the file turns on proving a hidden act, reading the form for the right trigger and coverage, and watching what the insured knew and when. This course builds the applied ability to investigate and resolve employee dishonesty and the related crime coverages under Texas conditions.

A working knowledge of commercial crime policy structure and basic coverage analysis is assumed, and those fundamentals are not re-taught here. The focus is the applied investigation, proof, measurement, and resolution of fidelity and related crime losses.

Course Learning Objectives

After completing this material, the participant will be able to:

• Apply the manifest-intent standard to distinguish covered employee dishonesty from employee-caused losses that fall outside the coverage.
• Place a fidelity loss in the correct policy form and period, distinguishing discovery-form from loss-sustained-form coverage and applying the continuity provisions across a chain of policies.
• Investigate and prove an employee dishonesty loss with independent evidence rather than an inventory or profit-and-loss computation.
• Route a loss among the employee dishonesty, forgery, computer fraud, and funds transfer fraud coverages, including the deceived-employee social-engineering scenario.
• Measure the direct loss and apply the recurring exclusions, the prior-knowledge rule, and the single-loss limit and deductible.
• Pursue recovery and subrogation against a dishonest employee, coordinating with any criminal restitution.
• Resolve fidelity claims in compliance with the Texas prompt-payment statute and integrate trigger, proof, routing, measurement, and recovery on a complex multi-element claim.