A fidelity bond covers a business for losses incurred as a result of fraudulent activities by specified individuals, generally the dishonest acts of employees. These bonds can be written in several different ways.
***
US: A form of protection which reimburses an employer for losses caused by dishonest or fraudulent acts of employees.
***
An obligation of the insurance company against financial loss caused by the dishonest acts of employees.
***
See: “Bond, Blanket Bond/Fidelity Bond”
***
See: Employee dishonesty coverage.