Fidelity Bonds
A Fidelity Bond is a financial guarantee that protects its policyholders from losses, either physical or monetary, they may incur due to dishonest or fraudulent acts caused by specified individuals like employees who handle cash or other valuable assets.
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Fidelity Bonds
A Fidelity bond is a financial guarantee that protects its policyholders from losses, either physical or monetary, they may incur due to dishonest or fraudulent acts caused by specified individuals. In most cases, a fidelity bond is obtained by an employer against loss caused by the dishonesty of an employee.
If one or more of your employees is entrusted to handle cash or other valuable assets, you should consider purchasing a fidelity bond.
The two main types of fidelity bonds are Blanket Fidelity Bonds and Scheduled Fidelity Bonds.
Blanket Fidelity Bonds
Blanket fidelity bonds cover all employees the day the bond is issued unless specifically excluded. New employees are automatically covered and conversely, cease to be covered when they are no longer employed. All employees are bonded for the same aggregate amount and the limit of liability applies “per occurrence”.
Businesses with large numbers of employees, businesses with frequent employee turnover and organizations with voluntary or honorary positions – not for profit associations – should use blanket fidelity bonds.
Scheduled Fidelity Bonds
Scheduled fidelity bonds provide coverage on employees named under the bond. It is only applicable to selected employees and each employee can be bonded for different amounts. The limit of liability applies per name or position scheduled.
This bond is used in businesses where employees have greater responsibilities and/or handle of larger sums of money. Real estate managers, bookkeepers, and office managers will be included under this bond.
You should be aware that fidelity bonds don't cover the following aspects in your business operation:
- Accidents, job injuries or work accidents
- Bail bonds or court bonds for the legal system
- Self-employed individuals are not covered if they steal from themselves.
As your Surety Bond Expert, we will obtain the bond you need at a price that you can afford in a timely manner. Give us a call so that we can get one of our brokers working on this for you. Contact our surety experts at 1-877-213-4545.
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