Fidelity insurance, also known as a fidelity bond or fidelity guarantee, is a type of insurance that protects policyholders from losses incurred as a result of fraudulent acts by specified individuals, such as employees or contractors. It is a form of business insurance that offers protection against losses caused by employees fraudulent or dishonest actions. Fidelity insurance policies vary, but they usually cover losses caused by theft, forgery, fraud, or other intentionally wrongful acts committed by employees or contractors. There are two types of fidelity bonds: first-party and third-party. First-party fidelity bonds protect businesses against intentionally wrongful acts committed by employees of that business, while third-party fidelity bonds protect businesses against intentionally wrongful acts committed by people working for them on a contract basis.

Fidelity insurance is important for businesses and associations to protect themselves from employee theft and other fraudulent activities. However, it is important to understand the limitations and exceptions of the policy before committing to it. For example, most fidelity insurance policies only cover theft of funds committed by "employees" and not other types of assets such as property and stock. Additionally, coverage may be denied if the employee who commits the theft caused fidelity coverage to be canceled at a prior job. Therefore, it is important to carefully consider the policys provisions and limitations before signing up for fidelity insurance.