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If you've heard the term before but aren't quite sure what it is, a good fidelity bond definition would reference the fact that it's a kind of insurance which an employer can buy to protect a business against employee theft, embezzlement, and other losses which aren't normally covered by traditional insurance. This can be in the form of blanket insurance, which covers all employees equally, or insurance which applies to specific employees in positions where access is greater to company assets, e.g. bank accounts, intellectual property, etc. Sometimes referred to as 'honesty bonds', fidelity bonds protect a company as well as the clients of that company, from the potentially devastating losses which could occur if a strategically-placed employee were to steal from the company, or commit damaging criminal acts such as forgery, which would be harmful to a company's reputation. In the majority of cases, fidelity surety bonds are optional hedges against such cri