Discovery Bond

Shark week!

A discovery bond is no bond at all, no sirree. A discovery bond is a type of business insurance policy. Yep. They like to keep things confusing in the business world.

A discovery bond is a type of fidelity bond (yes, also business insurance) which just means it's insurance that protects the company from its employees. For instance, if any employees do anything fraudulent or dishonest, a fidelity bond will insure the company against any losses from that fallout.

What makes discovery bonds a special kind of fidelity bond, a.k.a. a special kind of business insurance protecting itself from its own? A discovery bond covers losses that are a result of fraud while the policy is active, even if the fraud itself was done before the policy was in the picture. No matter when the fraud occurred, if it was "discovered" during the time a discovery bond is active, then it'll be covered by the insurance policy.