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 ?
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.
A fellow insurance-coverage nerd questioned my recommendation that the ERISA-required fidelity bond coverage for employee benefit plans be combined with the firm's employee dishonesty or employee theft coverage.
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.
This raises insurability questions, particularly in the area of fidelity bonds.
Fidelity bonds, the court observed, do not cover indirect or consequential injuries to the employer resulting from legal settlements with third parties who were the targets of the employee's acts.
The first refers to a loss caused by misplaced trust and an inadequate bond limit that could be worse today because of changes in wording of some fidelity bonds.
Furthermore, an employer can protect themselves with insurance and fidelity bonds, which would ameliorate the losses.
The special characteristics of contract, noncontract, and fidelity bonds are covered, as well as the subjective nature of the all-important assessment of the personal character of the parties involved.
Fidelity bonds provide coverage for employee dishonesty therefore protecting both the contractor and the owner.
Require clients to post fidelity bonds for client employees who have access to company funds.
ERISA (Employee Retirement Income Security Act of 1974) fidelity bonds are required for any entity that manages a retirement plan, but these do not cover personal assets from fiduciaries.
Available for more than 20 years, the program provides general/professional liability, workers' compensation, fidelity bonds, and employment practices liability.