insurance coverage against specified losses that occur from the dishonest acts or defalcations of employees. This bond may be applied to persons or positions.
coverage that guarantees that the insurance company will pay the insured business or individual for money or other property lost because of dishonest acts of its bonded employees, either named or by positions; also called blanket fidelity bond. The bond covers all dishonest acts, such as larceny, theft, embezzlement, forgery, misappropriation, wrongful abstraction, or willful misapplication, whether employees act alone or as a team.
coverage that guarantees that the insurance company will pay the insured business or individual for money or other property lost because of dishonest acts of its bonded employees, either named or by positions. The bond covers all dishonest acts, such as larceny,theft, embezzlement, forgery, misappropriation, wrongful abstraction, or willful misapplication, whether employees act alone or as a team. Businesses often bond their employees not only because the insurance will pay for the losses, but also because the bonding company may prevent losses by uncovering dishonesty in the work history of a new employee. Since a fidelity bond makes up only a part of protection against theft, other crime insurance is mandatory. Employee dishonesty insurance is usually bought through an individual Fidelity Bond, blanket position bond, commercial blanket bond, or a name schedule bond.
an assurance, generally purchased by an employer, to cover employees who are entrusted with valuable property or funds.
Example: A landlord employs a resident manager who, among other duties, collects the rent. To safeguard these funds during the collection process, the landlord purchases a fidelity bond on the resident manager.
