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A class of insurance that covers policy holders for losses caused by fruadulent employees is?

Insurance
WAEC 2016

A class of insurance that covers policy holders for losses caused by fruadulent employees is?

  • A. all risk policy
  • B. key-man policy
  • C. fidelity guarantee policy
  • D. money insurance policy
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Correct Answer: Option C
Explanation

A fidelity guarantee is a form of insurance protection that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals. It usually insures a business for losses caused by the dishonest acts of its employees.


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