<\/span><\/h2>\n\n\n\nWhen you discuss the differences between the two policies, you have to go through the coverage aspects. What is the purpose of buying insurance? The direct answer is \u2013 to get the coverage when applicable. So, to understand how each policy works, take a look at the varied coverage aspects – <\/p>\n\n\n\n
In Fidelity Bond<\/strong> \u2013 Most people know of the Fidelity bond as the insurance resource that covers the fraudulent activities of the employees in an organization. But there are other coverage scopes as well. With the Fidelity Bond, the customers at the receiving end of the fraudulent actions can also get coverage. Following are the coverage areas for a Fidelity Bond \u2013 <\/p>\n\n\n\n- Forgery: Covers for forgery incidents like counterfeiting signature to transfer lump sum from the customer or company\u2019s account<\/li>
- Asset: Illegal transfer of a valuable asset of the company and unauthorized access<\/li>
- Identity: Employees stealing identity data from the company\u2019s server and shared drives<\/li>
- Theft by consumers: Customer claims in the context of employees stealing valuable assets from them or the client<\/li><\/ul>\n\n\n\n
In D&O insurance<\/strong> \u2013 In the D&O insurance, the executive rank holders can get direct financial coverage if there are any legal allegations made against them in the context of their action. The policyholder can approach the insurer and claim for reimbursement for the legal cost and other settlement fees for the following reasons \u2013 <\/p>\n\n\n\n- Defense cost to combat legal allegations related to \u2013 Negligence, breach of corporate duties and responsibilities, discrimination, wrongful acts, mismanagement, accounting irregularities, misstatement, etc.<\/li><\/ul>\n\n\n\n