Meaning Of Fidelity Insurance

Fidelity coverage sometimes known as a fidelity bond is a type of insurance that will protect a business owner against the theft of money property forgery or fraud by an employee.

Meaning of fidelity insurance. An agreement whereby for a designated sum of money one party agrees to guarantee the loyalty and honesty of an agent officer or employee of an employer by promising to compensate the employer for losses incurred as a result of the disloyalty or dishonesty of such individuals. The insurer indemnifies the insured for losses caused by dishonesty or want of fidelity on the part of an employee. Insurance against loss caused by the dishonesty or nonperformance of an employee of the insured.

Insurance to protect a company against the dishonest or illegal behaviour of its employees. Insurance against the results of dishone. Fidelity insurance law and legal definition fidelity insurance is a form of insurance in which the insurer undertakes to guaranty the fidelity of an officer agent or employee of the insured.

Legal definition of fidelity insurance.