Insurance term
Fidelity Bond
A fidelity bond is a type of insurance that helps protect a business from financial loss caused by dishonest acts of an employee, such as theft, fraud, or forgery. It is commonly used by employers to help cover losses related to employee dishonesty, although it is called a bond, not a regular liability policy.
Example
A retail store discovers that a cashier has been stealing cash from the register, and the fidelity bond helps reimburse the business for the loss.
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