It provides coverage against the financial loss suffered by the insured as a result of fraud/ dishonest acts of the insured’s employees. The policy reimburses such losses to business owners within the limitations of the policy. It is also applicable for frauds that are turned up in a time frame of 12 months from the retirement, dismissal or demise of the said employee.

Usually this policy provides you coverage against:

• Covers Embezzlement & Misappropriation
• Forgery and Falsification of Documents
• Stealing & Larceny

There are mainly two types of fidelity bonds:

• First-party bonds: Protect companies from harmful acts by employees or clients
• Third-party bonds: Protect companies from the harmful acts of contracted workers.