Fidelity Bond
Insurance that protects businesses from financial losses due to employee dishonesty
Detailed Explanation
Despite the name, fidelity bonds are actually a form of insurance that covers theft, fraud, forgery, and embezzlement committed by employees. They help businesses recover losses from employee dishonesty.
Practical Example
A bookkeeper at a small business embezzles $50,000 over a two-year period by creating fake vendor accounts. The company's fidelity bond covers the financial loss once the theft is discovered.
Frequently Asked Questions
Related Terms
Need Insurance Coverage?
Request quotes from top insurance providers and find the best coverage for your needs.
Get Free Quotes