Misappropriation of assets, manipulation or even falsification of documents: The human risk factor is often underestimated by Swiss SMEs, with criminal acts by employees, service providers or third persons occurring more often than people think and not just at large companies. A personal and trusting work atmosphere is prevalent in reasonably sized companies in particular - employees gain deep insight into confidential administrative processes, giving them knowledge that may lead to unauthorized actions. If this does ultimately happen, it not only results in loss of trust, but also threatens financial loss and liability risks for you and your business.
The insurance covers financial losses incurred by a business through criminal acts committed by people in positions of trust. People in positions of trust are business partners and any other company employee or external person who works for a company, such as security or maintenance staff, fiduciaries or lawyers. Acts include internal non-compliance such as theft, fraud or misappropriation as well as breach of trust or betrayal of trade and business secrets. The insurance also covers financial losses incurred when external third parties exploit the helpfulness, good faith or uncertainty of people in positions of trust (social engineering) under false pretenses.
According to statistics, the majority of offenses are carried out by current, former or freelance employees of a company - they're familiar with the business and are difficult to expose. The motives for employee criminality are multifaceted: Greed, personal and financial problems or the feeling of a lack of recognition can be reasons for an abuse of trust, but revenge is also a possibility.
Abuse of trust can have devastating financial and legal consequences for businesses of any size, from a slump in turnover and profits (e.g. due to misappropriation) to serious liquidity bottlenecks due to financial losses and reputational damage.
With fidelity insurance, you transfer to AXA the risk of financial loss incurred through criminal acts committed by employees and third parties. Insured events include theft, fraud, misappropriation or betrayal of secrets and their direct consequences, but also losses where perpetrators attempt to manipulate interpersonal relationships to gain confidential data or money from your company (social engineering). Part of the AXA insurance cover therefore also includes comprehensive crisis management which, in addition to professional support in the event of a claim, also provides support after a claim.
To all employees and temporary staff as well as interns, employees working from home, staff on temporary contracts, third parties contracted by the policyholder, executive staff and board members. Losses incurred through external third parties are also covered.
Own loss: Theft, misappropriation or fraud: If acts such as these are deliberately committed by employees of your company or by other people in positions of trust, AXA covers the economic loss incurred and its direct financial consequences. Social engineering attacks by outsiders are also covered by the sum insured.
Liability claims: Damage caused by your own employees for which your SME can be liable is also covered by the insurance.
Costs of loss assessment and legal action: Costs of external and internal loss assessment as well as legal action are covered by fidelity insurance.
Legal protection: Within the scope of insurance, AXA pays the cost of defending unjustified claims by third parties.
Reaction and crisis management: In the event of non-compliance or business crime by employees or other people in positions of trust, you receive comprehensive support in claims handling from an interdisciplinary team of experts so that you can continue to focus on your day-to-day business. If there has been a data protection violation, people affected by this will be identified and informed; PR professionals will be consulted if there is a threat of reputational damage to your SME. You will also receive advice on how to avert any other similar incidents.
Betrayal of trade and business secrets: An employee in your internal research department misappropriates information and business secrets over a long period in order to build up their own company. The lost profits are considerable due to the new competitor in the sector.
Embezzlement: Despite enjoying the full trust of the executive board, a colleague has been embezzling money for years from the company's coffers and lining her pockets by declaring personal income as business expenses. This represents a shameless exploitation of trust and gives rise to a six-figure loss.
Misappropriation of goods: The manager of a DIY store has been misappropriating material from stock over a long period for his own renovations. Although the loss is incurred by head office, the cause of it is only discovered after the employee has retired, i.e. when the loss of goods suddenly stops.
Fraud/social engineering: Just before the weekend, a fraudster poses as CEO of a logistics company and instructs an employee in the accounts department by email to make an urgent payment. As it concerns the acquisition of a foreign competitor, the matter has to be dealt with in the strictest confidence. The money is deducted from the account in the following week, but the real CEO knows nothing about it.
The most effective protection against white-collar crime is prevention. For this reason, AXA works in collaboration with Structuul AG, offering analyses of where precisely your individual risk can be damaged financially by people in a position of trust. The analysis not only results in effective control systems, awareness and protection measures being taken, but you also receive a discount on your next year's premium for your fidelity insurance with AXA to help you protect your company against the residual risk.
Prevention is the most effective means of countering white-collar crime. It begins with the establishment of prevention risk consciousness.
In order to provide the best preventive protection for your company, an individual analysis by proven experts is to be recommended. In a collaboration with Structuul AG, AXA offers you the opportunity to take preventive measures in your company and implement protection at an early stage.
Following completion of an individual Fraud.Prevention.Awareness program with Structuul AG, AXA is granting a one-time discount of CHF 250 on the next annual premium of your D&O or fidelity insurance with AXA.
Where people work, mistakes can happen. Whether from negligence or ignorance, as result of material defects or production errors: People and property can be affected. Commercial third-party liability insurance protects a company against the financial consequences that may arise if it unintentionally causes damage to its customers or other external persons. It is one of the voluntary types of business insurance, but is worthwhile for every company that can be held liable based on its operational activities. And this could be practically any company, irrespective of its corporate form: from the self-employed and SMEs to companies of any size.
If you carry out an activity based on trust, you must be able to justify your deeds before the law. If you, as managing director or member of the board of directors, make a wrong decision, you are personally liable and your own assets are at risk. With directors' and officers' liability insurance from AXA, you and your assets are covered against such outcomes.
Cyber attacks are also increasing every year in Switzerland. Small and medium-sized Swiss enterprises in particular are being increasingly targeted by cyber criminals as they have less money to spend on IT security than large corporations. However, protecting against the risks associated with digital technology is in the interest of every business that operates in the digital world, processes sensitive customer data or depends heavily on reliable access to data and IT infrastructure. There is no such thing as 100% security on the world wide web, but cyber insurance from AXA protects your company against the financial losses a cyber attack might cause.
How secure is your company IT? Carry out the Cyber Check.
Studies show that the most damage incurred as a result of white-collar crime is caused by a company’s own staff. They know the company well and have the corresponding opportunities. The higher the employee’s hierarchical level, the greater the damage caused.
Internal security measures help avoid unintended errors, but also prevent the conscious execution of white-collar crimes or help discover them quicker. Unfortunately not all crimes can be prevented this way, but by taking out fidelity insurance, you transfer the residual risk to AXA.
The party responsible for a financial loss does not have to be identified in every case for fidelity insurance to provide benefits. Proof that an act carried out intentionally has led to a direct loss is sufficient.
By taking out fidelity insurance, you protect your company not only against liquidity bottlenecks due to white-collar crime, but you also minimize the personal liability risk of the executive board and board of directors.
Taking out fidelity insurance makes sense for small, medium-sized and large businesses. Furthermore, a financial loss can quickly threaten the very existence of small businesses in particular. With AXA, you have the option of choosing from a range of different sums insured to cover your actual needs.
Yes because both types of insurance are an ideal complement for each other. Cyber insurance covers all major threats from the internet – from phishing, implementing malware to system failures, while fidelity insurance provides protection against losses caused by targeted cyber attacks on your SME, such as fraud or manipulation of your employees.
If you become aware of an insured event, you can get in touch with us directly. AXA will support you in maintaining calm, keeping an overview and taking the necessary measures Furthermore, AXA will, among other things, cover the cost of assessing the loss and legal action.