Fidelity Surety Bonds

At Surety Bonds Agent, we offer a full range of fidelity bonds nationwide through an extended carrier network. Continue below to learn more about fidelity bonds and request a quote. If you have additional questions or want to explore bonding solutions for your business, speak with one of our knowledgeable surety bond experts.

CONTACT US FOR A

FREE FIDELITY SURETY BOND QUOTE

What Are Fidelity Bonds?

Fidelity bonds protect an employer against losses resulting from the unlawful, fraudulent, or dishonest actions of employees. They differ from other surety bonds in some important ways. For example, they typically are purchased voluntarily by a business owner, though in some states, owners of certain types of businesses are required to purchase a fidelity bond before they will be issued a business license. Another major difference between fidelity bonds and traditional surety bonds is that despite their name, fidelity bonds function like an insurance policy.

Note that one type of fidelity bond, ERISA bonds, is always mandatory. ERISA bonds are mandated for the protection of retirement plan assets from theft or misappropriation by employees with access to those assets.

Who Needs Them?

Different types of businesses benefit from being covered by different types of fidelity bonds. The two broad categories of voluntary fidelity bonds are “business services bonds” and “employee dishonesty bonds.”

All business owners with employees who have access to cash, securities, or other company property could benefit from purchasing an employee dishonesty bond—a “first party” fidelity bond. The bond will replace the amount stolen up to the coverage limit (minus any deductible).

Business owners who send employees out to do work at a client’s home or place of business need a business services bond. This is a third-party fidelity bond protecting the business owner from liability for an employee’s misdeeds that cause the client financial harm. These are sometimes referred to by the type of business purchasing the bond—for example, “janitorial services bonds,” “Landscaper’s bonds,” etc.

Even if you’re not convinced that you need a business services bond, your business will benefit from the competitive advantage it will give you. Potential customers will be impressed that you have gone to the expense of protecting them and are likely to view you as a responsible business owner.

How Do They Work?

There are only two parties to a fidelity bond agreement: the business owner and the company underwriting and issuing the bond. Employee dishonesty bonds and business services bonds both involve a legally binding contract between the business owner and the company issuing the bond. That agreement spells out what losses are covered, the coverage limits, and other details.

When a covered loss occurs, the business owner can file a claim against the fidelity bond to obtain compensation for the loss suffered by the business or by a client. Note that in some states, however, no claim can be submitted unless the employee who committed the dishonest act has been convicted of a crime.

What Do They Cost?

Like regular insurance policies, fidelity bonds are sold on a premium basis. The factors affecting the premium include the coverage amount, the number of employees covered, the size of the deductible, etc. Typically, the premium will be no more than about 2% of the coverage amount. The best way to know exactly how much your specific bond will cost you is to request a quote.

At Surety Bonds Agent, we offer a full range of fidelity bonds nationwide through an extended carrier network. Continue below to learn more about fidelity bonds and request a quote. If you have additional questions or want to explore bonding solutions for your business, speak with one of our knowledgeable surety bond experts.

CONTACT US FOR A

FREE FIDELITY SURETY BOND QUOTE

What Are Fidelity Bonds?

Fidelity bonds protect an employer against losses resulting from the unlawful, fraudulent, or dishonest actions of employees. They differ from other surety bonds in some important ways. For example, they typically are purchased voluntarily by a business owner, though in some states, owners of certain types of businesses are required to purchase a fidelity bond before they will be issued a business license. Another major difference between fidelity bonds and traditional surety bonds is that despite their name, fidelity bonds function like an insurance policy.

Note that one type of fidelity bond, ERISA bonds, is always mandatory. ERISA bonds are mandated for the protection of retirement plan assets from theft or misappropriation by employees with access to those assets.

Different types of businesses benefit from being covered by different types of fidelity bonds. The two broad categories of voluntary fidelity bonds are “business services bonds” and “employee dishonesty bonds.”

Employee Dishonesty Bonds

All business owners with employees who have access to cash, securities, or other company property could benefit from purchasing an employee dishonesty bond—a “first party” fidelity bond. The bond will replace the amount stolen up to the coverage limit (minus any deductible).

Business Service Bonds

Business owners who send employees out to do work at a client’s home or place of business need a business services bond. This is a third-party fidelity bond protecting the business owner from liability for an employee’s misdeeds that cause the client financial harm. These are sometimes referred to by the type of business purchasing the bond—for example, “janitorial services bonds,” “Landscaper’s bonds,” etc.

Even if you’re not convinced that you need a business services bond, your business will benefit from the competitive advantage it will give you. Potential customers will be impressed that you have gone to the expense of protecting them and are likely to view you as a responsible business owner.

There are only two parties to a fidelity bond agreement: the business owner and the company underwriting and issuing the bond. Employee dishonesty bonds and business services bonds both involve a legally binding contract between the business owner and the company issuing the bond. That agreement spells out what losses are covered, the coverage limits, and other details.

When a covered loss occurs, the business owner can file a claim against the fidelity bond to obtain compensation for the loss suffered by the business or by a client. Note that in some states, however, no claim can be submitted unless the employee who committed the dishonest act has been convicted of a crime.

Like regular insurance policies, fidelity bonds are sold on a premium basis. The factors affecting the premium include the coverage amount, the number of employees covered, the size of the deductible, etc. Typically, the premium will be no more than about 2% of the coverage amount. The best way to know exactly how much your specific bond will cost you is to request a quote.

REQUEST A QUOTE

Request a quote online or contact us to speak with one of our agents about the fidelity bonds you need.