A fidelity bond is a form of protection that covers clients for losses that they incur as a result of fraudulent acts by specified individuals. It usually insures a business for losses caused by the dishonest employees. An assurance is generally purchased by an employer to cover employees who are entrusted with valuable property or funds.
While called Fidelity bonds, Dishonesty Bonds, these obligations to protect an employer from employee dishonesty losses are really insurance policies. These insurance policies protect from losses of company monies, securities, and other property from employees who have a manifest intent to cause the company loss. There are also many other forms of crime-insurance policies (burglary, fire, general theft, computer theft, disappearance, fraud, forgery, etc.) to protect company assets. Most common Fidelity Bonds are Employee Dishoensty bonds, Business service bonds, Janitoral Bond, ERISA Bonds, Public official Bonds, etc…
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