Who is protected under a Fidelity Bond?

A Fidelity Bond is a type of insurance that protects an organization against losses due to dishonest or fraudulent acts by employees. In this context, the organization is the primary beneficiary of the Fidelity Bond, as it safeguards the financial interests of the business in case an employee misappropriates funds or engages in other dishonest behavior.

The bond serves as a form of security for the organization, ensuring that it can recover losses incurred due to employee theft or fraud. While employees may be protected indirectly by the bond, as it helps maintain the organization's health and stability, the direct protection against financial loss is oriented toward the organization itself.

Understanding the roles of each party can clarify why the focus is primarily on the organization. The other parties, such as clients or the employer, do not have the same level of direct protection against employee misconduct that the organization does under a Fidelity Bond.