A fidelity bond is a form of insurance protection that covers policyholders 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 acts of its employees.
While called 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.
Famous quotes containing the words fidelity and/or bond:
“The genius of American culture and its integrity comes from fidelity to the light. Plain as day, we say. Happy as the day is long. Early to bed, early to rise. American virtues are daylight virtues: honesty, integrity, plain speech. We say yes when we mean yes and no when we mean no, and all else comes from the evil one. America presumes innocence and even the right to happiness.”
—Richard Rodriguez (b. 1944)
“Every doctor will allow a colleague to decimate a whole countryside sooner than violate the bond of professional etiquet by giving him away.”
—George Bernard Shaw (1856–1950)