As the economy continues to struggle, it is likely that employees of major companies may choose to engage in dishonest conduct. When that conduct is discovered, companies that have purchased employee fidelity bonds will seek coverage, claiming that their losses were caused by their dishonest employees.
Generally speaking, a company is able to recover under such a bond if an employee (i) committed dishonest acts, (ii) had a “manifest intent” to cause a loss to the company, (iii) had a manifest intent to obtain a benefit for himself or herself or for any other person or entity, and (iv) engaged in misconduct that directly caused the company’s losses.
