Fidelity Bond or dishonesty bond is a form of protection that covers policyholders or business owners for losses that they incur as a result of fraudulent acts by specified individuals or employees. It usually insures a business for losses caused by the dishonest acts of its employees. An assurance is generally purchased by an employer to cover employees who are entrusted with valuable property or funds. The amount of the bond varies according to the applicant needs.
A Dishonesty bond protect and reimburse employers for losses caused by dishonest employees against theft, fraud and embezzlement.