Fidelity Bond
Definition of "Fidelity bond"
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.
Popular Insurance Terms
Charging the insured an amount that is above the actual premium required for placing and maintaining the policy in force. ...
Clause in most property insurance policies that excepts coverage for loss from a nuclear reaction or radiation, or radioactive contamination. (However, a fire resulting from one of these ...
Requirement that the combination of medicare and the employer's plan can not be greater than the amount the employer's plan would pay without Medicare. ...
Method of underwriting by which one or a group of Lloyd's underwriters write business on behalf of a number of Lloyd's syndicates and other insurance companies. Among the benefits of ...
Describing a risk whose probability of loss is less than the norm or the standard expectation of loss for that underwriting classification. ...
Percentage of total assets set aside by an insurance company to provide for unexpected losses. In general, a minimum of a 5% surplus ratio (5 cents in reserve for each $1 of assets) is ...
Section providing protection in four areas: Coverage A (Home) the structure of the home (basic contract amount). Other property coverages in Section I are expressed as a percentage of ...
Arrangement of financial affairs such that a family member who is in a lower income tax bracket receives income that another family member would otherwise have received (thereby reducing ...
Life insurance policy (individual or employee group basis) providing protection for a passenger on a regularly scheduled airline. ...
Have a question or comment?
We're here to help.