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

See blanket fidelity bond.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

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In turn, the mortgage company sought to recoup its $296,152 loss under its fidelity bond.

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Superior Court,(31) PG&E sued National Union under a fidelity bond for loss caused by the dishonest acts of its employee and two non-employees with whom he acted in collusion.

Annual survey of fidelity and surety law, 1994

Federal Insurance Co.(21) a paper distributor brought a claim under a fidelity bond for loss sustained as a result of theft by unidentifiable employees.

Annual survey of fidelity and surety law, 1994

The credit union filed its fidelity bond claim with CUMIS.

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The bond had been executed pursuant to a Washington state statute that required all escrow agents doing business within the state to procure a fidelity bond. The insured's bankruptcy trustee filed a claim under the bond and thereafter assigned the claim to the plaintiffs.

Annual survey of fidelity and surety law, 1993

"All lines" of coverage includes professional liability and workers' compensation, package/property, non-owned and hired auto, fidelity bond, D&O/EPLI.