Fidelity Bond


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Fidelity Bond

An insurance device in the form of a personal guaranty that protects against loss resulting from disreputable or disloyal employees or other individuals who possess positions of confidence.

A bank might, for example, insure itself against losses deliberately or negligently caused by their officers and staff through the execution of a fidelity bond. If such losses occur, the amount of the bond is forfeited to reimburse the losses.

References in periodicals archive ?
Brian Smith, Segal Select Insurance Services Inc's COO, said, 'As the premiere fiduciary insurance and fidelity bond broker in the Taft-Hartley market, this acquisition expands our core clientele and further increases Segal Select's West Coast presence.
24, 2013 /PRNewswire/ -- TechInsurance, the country's leading online agent of insurance for small IT businesses, announced this week an expansion of its fidelity bond offerings, which translates to greater competition on price and coverage for the IT firms it protects.
The fidelity bond issued to Sperry from CUMIS was identical to the CUMIS Form 500 bond that was issued to the 26 credit unions that were also defrauded by CUN/ USM, according to Sperry's complaint.
One of the nation's premier 1031 specialists and Qualified Intermediaries, Madison Exchange adheres to the most rigorous and comprehensive standards of fiduciary security, with a $10 million fidelity bond, a $10 million E&O policy, and guaranteed FDIC-backed protection for client funds.
With the exchange funds in a qualified escrow or qualified trust account, and a carefully selected QI who maintains adequate fidelity bond coverage and sufficient Errors and Omissions insurance, your client should have most of their exposure to any loss substantially reduced.
Because the actual payment may not occur for years after the bond's purchase and because of the cost of pursuing a fidelity bond claim, the real return on fidelity bonds is lower.
Two common misconceptions about fiduciary liability insurance are that your fidelity bond will cover your fiduciary exposure and that coverage is expensive.
The group, staffed by eight fulltime employees, is a source for property/casualty coverages, including directors and officers, fidelity bond, employment practices liability and related areas.
The latter would be covered under a fidelity bond, but the former is questionable, at best.
a mutual benefit corporation that provides fidelity bond protection for independent escrow companies, covered the loss suffered by the buyers and sellers when Country Oaks collapsed, district attorney's officials said.
The third loss was not covered due to unsatisfactory fidelity bond wording.
The expense loading for surety and fidelity bonds is higher than average for the property-liability insurance industry overall and accounts for a higher proportion of the surety and fidelity bond premium than expected losses.