Name Position Bond

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Name Position Bond

A bond or insurance policy covering a company in the event that it loses money as the result of theft or fraud on the part of employees in certain, stated positions. For example, a name position bond may cover theft by the chief financial officer, regardless of who holds that position at a given time. It is important to note that blanket fidelity bonds generally only cover situations in which an employee commits fraud for personal gain; it does not cover situations in which the employee, without support or knowledge of management, falsifies trading so that it makes the company appear healthier than it is. See also: Bonding, Operational Risk.

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