FIDELITY INSURANCE

Fidelity insurance contract is between an insurance company and some employer. Under, fidelity insurance, the insurance company compensates the loss suffered by the insured employer on account of the fraud, dishonesty and embezzlement of his employees. We can also say that Fidelity insurance provides security against the breach of faith by the employees and the subsequent loss caused by such a breach of faith. Fidelity insurance is mostly taken where the employees are incharge of cash and goods of the company. If some employee indulge in fraud , dishonesty , and embezzlement , the loss is compensated by the company.