Fidelity bond

A fidelity bond reimburses an employer for losses caused by employee actions, such as embezzlement, forgery, or theft. A fidelity bond may cover all employees, or it may only be targeted at losses caused by specific employees. The insurer will require the employer to engage in certain employment screening activities, to reduce the risk that people will be hired who are more likely to steal from the organization. Fidelity bonds are required by law in certain industries, such as security firms and transporters of cash.

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Enterprise Risk Management