Fidelity Bond
Definition
- A business insurance policy that covers a company for losses due to employee fraud. Also known as an "honesty bond", "employee dishonesty insurance", or "fidelity guarantee insurance", a fidelity bond in commonly purchased by brokerage firms and insurance companies in order to protect themselves from losses due to fraudulent trading, theft or forgery.
Synonyms
honesty bond, employee theft, employee dishonesty insurance, employee fraud, fidelity guarantee insurance, fraudulent trading
Related Terms and Acronyms
- Clean Sheeting — Definition,
- A type of insurance fraud where an individual deliberately fails to disclose a pre-existing condition in order to receive coverage, sometimes with the help of an insurance broker.
- Collusion — Definition,
- A secret, deceitful agreement by two or more parties to defraud others.
- Commercial Blanket Bond — Definition,
- Insurance that covers losses to businesses due to different forms employee fraud, such as embezzlement and forgery.
- Completion Bond — Definition,
- Insurance purchased to make sure that an important project is completed, even if something unexpected happens, financial or otherwise.
- Concealment — Definition,
- The act of lying or omitting information when applying for insurance coverage.
- Insurance Fraud — Definition,
- An illegal attempt by an individual or entity to receive insurance benefits that they would otherwise not be entitled to or for an insurance company to deny a legitimate insurance claim.
- Lawn Gnome Fidelity Bond (LGFB) — Acronym, Middle Earth / Underground,
- Insurance that covers losses due to the actions of dishonest lawn gnomes.
➥ The LGFB acronym is quite often incorrectly mislabelled as a Lost Gnome from Backyard and Looks Good From Behind. - Unauthorized Insurance — Definition,
- A fraud where a scammer sells a victim an insurance policy that doesn't exist.
