Fidelity bond

A fidelity bond is a form of protection that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals. It usually insures a business for losses caused by the dishonest acts of its employees.

While called bonds, these obligations to protect an employer from employee-dishonesty losses are really insurance policies. These insurance policies protect from losses of company monies, securities, and other property from employees who have a manifest intent to cause the company loss. There are also many other forms of crime-insurance policies (burglary, fire, general theft, computer theft, disappearance, fraud, forgery, etc.) to protect company assets.

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Look at other dictionaries:

  • fidelity bond — or fidelity insurance Insurance protecting an employer from losses resulting from the deliberate misappropriation of the firm s assets by one or more of its employees. Fidelity insurance is obtained by most financial institutions. American Banker …   Financial and business terms

  • fidelity bond — see bond 1a Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. fidelity bond …   Law dictionary

  • Fidelity Bond — A form of business insurance that offers an employer protection against losses either monetary or physical caused by its employees fraudulent or dishonest actions. Fidelity bonds are often held by insurance companies and brokerage firms, which… …   Investment dictionary

  • fidelity bond — Contract of fidelity insurance. Runcie v. Corn Exchange Bank Trust Co., Sup., 6 N.Y.S.2d 616, 620. A guaranty of personal honesty of officer furnishing indemnity against his defalcation or negligence. Phillips v. Board of Education of Pineville,… …   Black's law dictionary

  • fidelity bond — noun : a bond or other form of contract for indemnifying an employer against financial loss due to the dishonesty of an employee see insurance * * * fidelity bond, a bond issued as fidelity insurance …   Useful english dictionary

  • fidelity bond — A bond conditioned upon payment of loss resulting from embezzlement by an officer or employee, usually construed as an insurance contract, notwithstanding it is nominally in the form of a contract of suretyship. See fidelity guaranty insurance …   Ballentine's law dictionary

  • fidelity bond — noun An insurance contract that covers an employer against loss due to fraudulent or dishonest employees …   Wiktionary

  • fidelity bond — An insurance policy that provides cover against specified losses occurring from the dishonest acts or defalcations by an employee …   Accounting dictionary

  • blanket fidelity bond — SEC required insurance coverage that brokerage firms are required to have in order to cover fraudulent trading by employees. Bloomberg Financial Dictionary …   Financial and business terms

  • bond — 1 n 1 a: a usu. formal written agreement by which a person undertakes to perform a certain act (as appear in court or fulfill the obligations of a contract) or abstain from performing an act (as committing a crime) with the condition that failure …   Law dictionary

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