fidelity bond
Definition
A debt obligation serving to protect an employer from loss in the event that its employees cause damages through dishonest or negligent action. Insurance companies and securities firms are often required to possess a fidelity bond.
Use fidelity bond in a sentence
“ The fidelity bond was a form of insurance for the financial manager who set up the investment portfolio to include it. ”
“ You may want to take on a fidelity bond so that you know your money is earning even more for you. ”
“ After my hedge fund manager lost a lot of money in a scam run by one of the employees of one of his brokerage houses, he was relieved to find out they had a fidelity bond and would be able to repay him. ”
