A fidelity bond indemnifies a company in case it suffers losses from defalcations committed by its employees.

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A fidelity bond is a type of insurance that protects a company from losses resulting from dishonest or fraudulent acts committed by its employees. The bond provides coverage for embezzlement, theft, or other types of financial fraud. If an employee defrauds the company and causes financial losses, the fidelity bond will indemnify the company and compensate it for the damages suffered.

A Fidelity Bond Indemnifies a Company in Case It Suffers