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insurance taken out by an employer against losses incurred through dishonesty by employees. A fidelity bond is a form of insurance protection that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals. What is Fidelity Insurance? Fidelity insurance or fidelity bond insurance is a business insurance product that provides protection against business losses caused. Fidelity coverage, sometimes known as a fidelity bond, is a type of insurance that will protect a business owner against the theft of money, property, forgery or fraud by an employee. TATA AIG Fidelity Insurance Policy provides coverage for loss of money, securities, or other assets resulting from employee theft, computer fraud, forgery etc. Key benefits - covers financial lost due to employee fraud/dishonesty.