Body Corporate Fidelity Guarentee
The fraudulent misappropriation of the Body Corporate funds or tangible property can be
minimised by prudent risk management practices. Fidelity Guarantee insurance covers the insured’s
money, negotiable instruments, goods or other property against theft, embezzlement or
misappropriation by employees or those acting on behalf of the Body Corporate.
What are the Issues?
Every complex has the potential exposure of employee dishonesty. Good risk management
practices include the screening of workers before employment with reference checks being confirmed.
There is a risk of employees embezzling payments received from investors, residents, and/or tenants.
Several employees should perform accounting, check disbursement, and bookkeeping functions, if
possible. A positive indication of good risk management practises will include if the insured
performs periodic, unannounced audits. Other factors for improving risk are influenced by the level
of security on the premises. Are all accessible windows fitted with tamperproof locks, and all doors
equipped with double-cylinder, deadbolt locks? Are security service patrol performed during off hours?
Are the premises equipped with closed-circuit surveillance cameras?
All underground garages should be locked at all times with the only means of access being a special
key or card for entry. It is recommended that ID stickers or tags must be displayed on every tenant’s
car. There must also be procedures for handling packages in the package room particularly with
regard to unclaimed packages. Laundry rooms should be accessible only by key.
The insured’s employees or security guards should check empty apartments regularly to make sure they are
secure and truly vacant. What is your practice?
Cash, cheques and company credit card receipts · What is the average and maximum amount of
cash on the insured’s premises daily and are insurance limits offered provide adequate
coverage for these amounts?
· Are cheques stamped “For Deposit Only” immediately upon receipt
· Are bank deposits made daily and at staggered times?
· Do several employees perform accounting, check disbursement, and bookkeeping functions?
· Are periodic, unannounced audits conducted *Contact your Accountant for approved practices
· Are approved safes used? Safes that are designed to withstand tool – torch – and
explosive resistant with time delays are timedelay the most appropriate
· What is your level of premises security? Are all accessible windows fitted with tamperproof
locks, and are all doors equipped with doublecylinder, deadbolt locks?
· Are the premises equipped with closed-circuit surveillance cameras?
· Are the premises connected to a monitored security company?
· Are premises patrolled after hours?
· Where is the location and expect response time of nearest police
*Contact your Security Consultant for the most appropriate level of approved practices
· Are workers screened before employment, and are all references checked?
· Background checks run on its prospective employees prior to hiring