fidelity bond

(redirected from Blanket fidelity bond)
Also found in: Legal, Financial.
Related to Blanket fidelity bond: surety bond

fidelity bond

n.
An insurance contract that indemnifies an employer for loss resulting from a fraudulent or dishonest act by an employee.
American Heritage® Dictionary of the English Language, Fifth Edition. Copyright © 2016 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
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The Surety Association of America, which underwrites "blanket fidelity bonds" -- insurance policies that provide coverage against losses due to employee dishonesty -- found that insurers like AIG, Pruduential and Travelers paid out $385 million in losses in 1998 on $674 million in premiums underwritten -- a high loss ratio of 57 percent.
In addition, blanket fidelity bonds, coverage for electronic data processing (EDP) exposures and utility service interruption are now commonplace among pools.