Meaning Of Fidelity Bond

Commercial blanket bond definition.

Meaning of fidelity bond. A company s insurance protecting it against dishonest or illegal behaviour by employees. 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.

A special insurance policy that covers losses caused by dishonest employees. Property management companies and others with employees who handle money belonging to clients should generally obtain fidelity bonds also called a surety bond.