Fidelity Guarantee Insurance (Employee Dishonesty Insurance)

The policy covers direct financial losses suffered by an employer due to dishonest or fraudulent acts committed by employees during the course of their employment. This includes theft of cash, stock, or securities, embezzlement, forgery, and fraudulent fund transfers. Coverage can be structured on a named employee basis, position basis, or blanket basis across the organization. Claims are usually triggered upon discovery of the act within the policy or discovery period.