Filing a fidelity bond claim in New York can be complex. Here are some common hurdles you might encounter when filing fidelity bond claims and how you can overcome them.
Establishing proof of loss
One of the primary challenges in fidelity bond claims is establishing proof of loss. You must provide clear evidence of an employee’s fraudulent or dishonest acts. You need to gather proof to support your case. This can include money records, lists of transactions, email messages and reports from internal reviews. Make sure all your evidence complies with New York’s court admissibility rules.
Understanding policy coverage
Fidelity bond policies vary in terms, conditions and coverage limits. You must thoroughly understand your policy to determine if your claim falls within its scope. In New York, policies often require you to demonstrate that the employee received an improper financial benefit from their actions.
Navigating policy exclusions
Fidelity bond policies often exclude specific individuals, situations or types of losses from coverage. Knowledge about an employee’s prior fraud can be a reason for exclusion.
Meeting legal deadlines
New York has a strict rule on filing claims on fidelity bonds on time. Failing to file on time can result in a claim denial. Ensure you are aware of all relevant deadlines and submit your claim promptly. Maintaining thorough records and regularly communicating with your insurer can keep you on track.
Consider seeking legal assistance
Given the complexities involved in fidelity bond claims, seeking legal assistance can be beneficial. It can help you process your claims more smoothly and avoid a lengthy wait.
