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 ?
In turn, the mortgage company sought to recoup its $296,152 loss under its fidelity bond.
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.
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.
The credit union filed its fidelity bond claim with CUMIS.
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.
The funds must belong to the individual subscribers and not the Agent or custodian; The insured institutions, MMOs and Agents shall render returns in specified formats to NDIC on predetermined frequencies; Mobile Money Operators (MMOs) shall be required to take Fidelity Bond Insurance for any losses arising from the fraudulent acts of their staff and agents.
Bidders shall be covered by a Fidelity Bond of not less than $25,000 issued by a surety company that has an A.M.
In the Q2 of 2010, BNC noticed that it had been defrauded, wherein the fraudulent activity was by an external company that was servicing residential loans on behalf of BNC and since 2010, the firm has been pursuing a claim under its fidelity bond with its insurers.
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.
Alliance and General Insurance Company Limited, A&G Life Assurance Plc and Fidelity Bond Insurance Brokers.
"All lines" of coverage includes professional liability and workers' compensation, package/property, non-owned and hired auto, fidelity bond, D&O/EPLI.
A fidelity bond is a business insurance policy that insures an employer against employee dishonesty, such as theft, forgery, larceny, and embezzlement.