Fidelity Guarantee Insurance covers the loss incurred by the insured by breach of fidelity on the part of an employee or any other person in whom the insured has reposed confidence. Such policies ordinarily specifies the precise terms of the conduct on the part of the employee which creates liability on the part of the insurer. Fidelity Insurance provides protection to the employers against losses caused due to fraud, embezzlement or dishonesty by their employees. There are different types of Fidelity Insurance policies, namely, Individual policy, Collective policy, Floating policy or floater, Position Policy. In order to apply for the claim amount, the insured must satisfy the insurer about dishonesty and negligence on the part of his employee. A policy insuring the fidelity of a person acting in one capacity does not cover him if he acts in a different capacity or he is required to perform different duties.
