State the purpose of Fidelity insurance ?

Dear Student, fidelity basically means faith or trust on an individual. In this way, fidelity insurance means insurance against breach of trust or disloyality. There are many organisations (for instance banks, IT organisations), where the hardcore secrets and other confidential matters are restricted to a few employees, Suppose, I am an IT manager in a company. So, all the important IT codes and programs will be known to me. Now, let's say I am not loyal to this company and pass-on these information to the competitor company. In this case, I am breaching my company's trust. Here comes the role of fidelity insurance. If my company takes up a fidelity insurance, then it gets itself insured against any such theft and losses hereby.

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