Fidelity Bond Scope Sample Clauses

The Fidelity Bond Scope clause defines the extent and limitations of coverage provided by a fidelity bond, which protects an organization against losses caused by fraudulent or dishonest acts of its employees. This clause typically outlines which types of losses are covered, such as theft or embezzlement, and may specify any exclusions or conditions under which the bond applies. By clearly delineating the boundaries of protection, the clause ensures both the insurer and the insured understand the risks covered, thereby reducing disputes and clarifying liability in the event of employee misconduct.