Regulations state that the
fidelity bond must be worth no less than 10% of plan assets, with a minimum of $1,000 and a maximum of $500,000.
While the 1995 collapse of Barings PLC focused the media's and public's attention on another massive loss sustained from trading in "derivatives," the insurance industry has braced itself for a new round of claims by financial institutions and investors that have incurred these losses and other liabilities.(1) One type of insurance that may be the subject of claims is the
fidelity bond. But there are coverage issues that arise in claims involving derivatives-trading losses.
Make sure the company has a
fidelity bond. Today buildings have become increasingly complex.
Appropriate coverage can be realized through broadening the self-insured's definition of employee to include employees of the TPA and naming the self-insured as the obligee on the TPA's
fidelity bond.
Now, you can obtain insurance to protect against that personal liability -- but that's probably not the fiduciary liability insurance you may already have in place, or the
fidelity bond that often is carried to protect the plan against loss resulting from fraudulent or dishonest acts of those covered by the bond.
The group, staffed by eight fulltime employees, is a source for property/casualty coverages, including directors and officers,
fidelity bond, employment practices liability and related areas.
The court held that a
fidelity bond is a contract of indemnity against loss, not a contract of indemnity against liability.
Wolfe said he carries a
fidelity bond and only signs checks himself.