Fidelity guarantee is an insurance cover against loss arising from?

Answer Details

Fidelity guarantee is an insurance cover that protects a business or organization against financial losses caused by the dishonest or fraudulent actions of their employees. This type of insurance provides coverage for losses that result from theft, embezzlement, forgery, or other fraudulent activities committed by employees. It does not provide coverage for other types of losses such as trade debts, personal accidents, fire disaster, or sea disaster. It is specifically designed to cover losses that result from employee fraud or dishonesty. So, if an employee steals from the company, for example, the fidelity guarantee insurance policy would provide financial compensation to the business to help recover from the losses incurred due to the employee's actions.