What does Fiduciary Bond mean? Read on to discover the definition & meaning of the term Fiduciary Bond - to help you better understand the language used in insurance policies.
A fiduciary bond is a form of insurance protection ordered by a court to guarantee the faithful performance of a personal representative. Through a fiduciary bond, a bond company contracts to cover the loss whenever a representative, guardian, administrator, executor, or any person in similar capacity commits a mistake or malfeasance and thereby pay the money that would have otherwise be entitled to the ward.
We hope the you have a better understanding of the meaning of Fiduciary Bond.