Common Contracts
1 similar Fidelity Bond Agreement contracts
What is a fidelity bond?Fidelity Bond Agreement • August 29th, 2022
A fidelity bond is a three-way contract or agreement between the employer (the credit union), the employee and the insurance provider. The insurer guarantees the honesty or fidelity of an employee and agrees to indemnify the credit union for loss arising from a dishonest or fraudulent act of the employee. Fidelity bonding is therefore available only to those individuals who meet the highest possible standards of honesty, integrity, and good faith. In addition, as part of the agreement, the employee agrees to be held responsible for such loss incurred by the credit union on the employee’s behalf. Upon payment of a claim, the insurer assumes the credit union’s right to pursue all legal avenues for recovery against the employee(s) causing the loss.
