Protect Your Business With a Fidelity Bond

By Jake Robberts

Before we get started lets clarify what a Fidelity Bond is. A "Fidelity Bond" is another name for a Commercial Crime Policy. Many Agents consider it a surety bond but it is not it is a form of insurance that protects the employer from theft of a employee

"According to research conducted by the Association of Certified Fraud Examiners (ACFE), U.S. organizations lose an estimated 7 percent of annual revenues to fraud. Based on the projected U.S. Gross Domestic Product for 2008, this percentage indicates a staggering estimate of losses around $994 billion among organizations, despite increased emphasis on anti-fraud controls and recent legislation to combat fraud." -acfe.com"

A Fidelity Bond protects an employer from employee theft. Usually, insurance companies and security firms are required to obtain a fidelity bond. Essentially Fidelity Bonds guarantee the employer's money and property in the event that an employee causes damage though negligent or a dishonest. Fidelity Bonds or Employee Dishonest bonds are usually required by private obligees but are required by some government entities.

Its primary coverage is employee theft. This will pay for loss or damage to money, securities and other property directly from theft or forgery by an employee. Several other agreements can be added or included in your Fidelity policy to protect you from someone other than an employee. Such as:

Forgery or Alteration

Inside the Premises - Theft of Money & Securities

Inside The Premises - Robbery or Safe Burglary of other property

Outside The Premises - Theft of Money & Securities and Robbery of Other property

Computer Fraud

Money Orders And Counterfeit Currency

Other coverage could apply depending on the type of business and insurance company providing the policy.

Jake has been written Fidelity Bonds and Surety Bonds for over 10 years.