fidelity bond


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Fidelity bond

Blanket Fidelity Bond

A bond or insurance policy covering a company in the event it loses money as the result of employee theft or fraud. 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. The Federal Bonding Program, run by the Department of Labor, insures or guarantees the insurance of ex-offenders whose employment adds significant risk of theft or fraud. The SEC requires brokerages to be covered by a blanket fidelity bond. See also: Bonding, Operational Risk.

fidelity bond

fidelity bond

A special insurance policy that covers losses caused by dishonest employees. Property management companies and others with employees who handle money belonging to clients should generally obtain fidelity bonds.Also called a surety bond.

References in periodicals archive ?
The firm said that it has acquired Broker of Record rights to certain fiduciary liability policies and fidelity bonds previously brokered by David Walker Insurance Services (DWIS) in San Francisco.
The new coverage options mean that small technology businesses and independent IT contractors interested in landing lucrative contracts with clients in the financial sector now have a better chance of securing the third-party Fidelity Bond coverage often required by those contracts.
While calculating the extra value from such fortuitous fidelity bond payouts is difficult, I believe that cases in which payments are worth more than face value are rare, for three reasons:
Professional liability insurance, directors' and officers' (D&O) liability insurance and fidelity bonds fail to provide relief.
Fidelity Bond Underwriters contain a loan fraud threshold of $2,500 improper personal gain.
Smith said, "Over the past 10 years, the practice has grown well beyond its original mission: assisting joint labor-management benefit plan Boards of Trustees to obtain fiduciary insurance and fidelity bond coverage under the statutory provisions of the Employee Retirement Income Security Act (ERISA).
The temporary order of injunction made in favour of Alliance & General (A&G) Insurance, A&G Life and Fidelity Bond has been discharged on the strength of an oral appeal made by the National Insurance Commission (NAICOM) counsel, Prof.
Bill Jennings, underwriter for Beazley's fidelity bond and crime insurance products, said: "Analyzing risks in the fidelity market is getting trickier due to rapid technological advances - which can make employee theft easier and faster - a poor economy and a lack of oversight by regulators.
in a case involving a wrongful denial of a fidelity bond claim.
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.
The traditional fidelity bond and crime policies exclude coverage for any consequential or indirect losses.
The Woodland Hills-based agency is a not-for-profit mutual benefit corporation that provides fidelity bond protection for independent escrow companies, Showers said.