A fidelity bond protects the policyholders/investors in a benefit plan for losses incurred as a result of fraudulent or dishonest acts by the specific individuals charged with handling the benefit plan.
Why It’s Important
This policy covers the criminal side of benefit plan management. The policies are designed to cover specific intentional acts such as theft, fraud and embezzlement. The coverage reimburses the insured organization for losses suffered as a result of an employee’s intentional actions.