Fidelity bonds are designed to protect their policyholders from any loss that occurs as a result of harmful or deceitful actions by specifically indicated parties. In most cases, fidelity bonds are used to protect corporations from the actions of dishonest employees.

Despite the fact that they are called bonds, fidelity bonds are really a type of insurance policy for businesses/employers, insuring them against suffering losses resulting from employees (or clients) who intentionally cause harm to the business. They cover any actions that improperly benefit an employee financially or intentionally hurt the business financially. Fidelity bonds can’t be traded and don’t accrue interest like normal bonds.

 

Summary: 

· Fidelity bonds protect their policyholders from malicious and harmful acts committed by employees or clients.

· There are two types of fidelity bonds: first-party bonds (which protect companies from harmful acts by employees or clients) and third-party bonds (which protect companies from the harmful acts of contracted workers).

· The bonds are useful because they are part of a company’s risk management strategy, hedging the company against acts that would negatively affect their assets.

 

The bonds cover many of the same things that are covered by basic crime insurance policies such as burglary and theft, but they also cover things that these policies might not. This includes things such as fraud, forgery, embezzlement, and many other “white collar” crimes that can be committed by employees in financial institutions and large companies.


AAA Lendings is a direct mortgage lender with over 20 years of lending experience. We have a group of experienced professionals providing services for home buyers and people with mortgage needs. We offer 100+ customized loan programs in conventional, FHA, VA, EZ qualified and foreigner nationalloans. We always put customer's needs first and provide the best customized solution for each customer.



阅读原文 阅读 1224





Quick Quote