Fidelity Bonds

A fidelity bond is a bond which indemnifies an employer against financial loss due to the dishonesty of an employee or protects a business from certain types of damage caused by employees. This type of protection is not mandatory in most states, but it does shield a company from expenses that are not covered by other policies.

There are several types of fidelity bonds, each providing specific coverage:

  • Employee Dishonesty: Do you want to protect yourself from employee theft? Employee Dishonesty is a generic term describing fidelity bond coverage guaranteeing against loss caused by dishonest officers or employees of a commercial firm or by dishonest public officials or employees.  For dishonesty there is no deductible and there is very basic coverage for dishonest acts of employees.
  • Business Service Bond: Do you want to protect your clients from theft committed by your employees? Business Service bonds are used in such industries as in-home child care.
  • Commercial Crime Bond: Do you want to cover more than just employees?  Commercial crime is really more like insurance than a typical bond, and it can cover much more than employee dishonesty.  If a claim is made the policy owner will likely have to pay a deductible to recoup any loss.  There are seven basic agreements for a crime policy: Employee Theft, Forgery or Alteration; Inside the Premises – Theft of Money or Securities; Inside the Premises – Robbery or Safe Burglary of Other Property; Outside the Premises; Computer Fraud; and Money Orders and Counterfeit Paper Currency.

Goldleaf Surety has a number of good surety markets that write fidelity bonds.  And we invite you to partner with us for your insureds’ fidelity bond needs.