Fidelity Bond

A fidelity bond is a type of insurance policy that provides coverage for any losses incurred due to a wrongful act or fraudulent act committed by an employee. The bond is designed to protect businesses from intentional acts of dishonesty or fraud committed by their employees. It can protect the business from losses resulting from employee theft, forgery, or embezzlement.

The fidelity bond is usually purchased by the employer and the premium is paid either by the employer or the employee. The policy may be issued on an individual basis or in a group policy. In either case, the employer pays the premium and is the beneficiary of the policy.

The definition of a fidelity bond is an insurance policy that provides coverage for any losses incurred due to a wrongful or fraudulent act committed by an employee. It is designed to protect businesses from intentional acts of dishonesty or fraud committed by their employees. The bond is usually purchased by the employer and the premium is paid either by the employer or the employee.