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Fidelity Bond

   Also found in: Financial, Wikipedia 0.01 sec.

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.



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The Company is in good standing in terms of its liability insurance, workers' compensation insurance, fidelity bond, and business license.
Furthermore, the law requires that intermediaries maintain a fidelity bond (or other protective devices) of at least $1 million, and maintain errors and omissions insurance of at least $250,000.
It said it will file a claim under the fidelity bond with its insurance company.
 
 
 
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