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.

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We routinely advise, evaluate, negotiate and, if necessary, litigate insurance coverage disputes involving a wide range of claims and policies, including property insurance, business interruption coverage, third-party liability insurance for environmental, products, asbestos and other claims, as well as claims under Directors & Officers liability policies, claims under professional liability or Errors & Omissions insurance, employment practices liability claims, multimedia errors and omissions claims, cyber liability claims, and claims under fidelity bonds.
Segal Select Insurance Services Inc, a fiduciary insurance and fidelity bond broker in the Taft-Hartley market, has announced that it has acquired a brokerage.
This may indicate that the Department of Labor is confusing fidelity bonds with fiduciary liability policies.
One reason that fidelity bonds have such low premium-to-payout ratios is that the bond policies are complicated and somewhat ambiguous.
Personnel: Agreements should identify who will hire personnel providing services under the agreement and who will bear associated personnel costs, including salaries, fidelity bonds, payroll taxes, worker's compensation costs, etc.
Some organizations may wish to go one step further and obtain fidelity bonds to cover those volunteers that will handle cash.
Available for more than 20 years, the program provides general and professional liability coverage, workers' compensation, fidelity bonds, and employment practices liability.
Back in the days when fidelity bonds covered losses due to employee dishonesty, insurers issued continuous policies.
The letter asked for numerous forms and documents, including plan documents, summary plan descriptions, tax returns, annual reports, audited financial statements, board and committee minutes, fidelity bonds, service provider agreements and more.
Professional liability insurance, directors' and officers' (D&O) liability insurance and fidelity bonds fail to provide relief.
The court observed that the term "dishonest" in relation to fidelity bonds has been interpreted to mean acts that are manifestly unfair to the employer and that subject the employer to potential loss.
And finally, we review some specific shortcomings found in many of the fidelity bonds available.