Fidelity Guarantee Policy is an insurance policy that protects employers from financial loss resulting from the dishonest acts of their employees. The policy covers direct loss suffered by the employer due to any act of fraud, forgery, or dishonesty committed by the employee. This type of policy is commonly recommended for employees who handle cash or have access to financial or confidential information. The policy provides financial compensation to the employer in case of any financial loss due to employee theft or fraud.