Fidelity and Surety Programs Definition & Meaning | Insurance Term | CSIMarket
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Glossary

Fidelity and Surety Programs

Insurance Term

Fidelity and Surety Programs are types of insurance programs designed to protect businesses against financial loss caused by the dishonest actions of employees or contractors, as well as failure to fulfill contractual obligations.

The Fidelity Program is designed to protect businesses against losses caused by employee theft, embezzlement, fraud, or forgery. This type of coverage typically includes protection against loss of money, securities, and other valuable assets. The coverage is similar to a crime insurance policy, though it is more specific to internal employee misconduct.

On the other hand, the Surety Program is designed to provide protection for businesses engaged in construction projects or other types of contracts. This insurance program ensures that contractors or subcontractors fulfill their contractual obligations by providing financial guarantees or bonds. These bonds may be required by government agencies or private entities as a requirement to secure projects.

In the insurance industry, Fidelity and Surety Programs are commonly used to provide protection to businesses against financial loss due to employee theft, contractor negligence, or contractual breaches. Businesses in the construction, financial services, and government sectors are typical users of these programs.

Overall, Fidelity and Surety Programs are essential tools for businesses and individuals to ensure their financial protection against various kinds of losses resulting from dishonest actions of employees or contractors and breach of contractual obligations.


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