Fidelity Bonds
What is a fidelity bond?
A fidelity bond protects your business against financial losses due to employee theft, fraud, or dishonesty. It acts as a form of insurance against internal crimes.
Who needs a fidelity bond?
Fidelity bonds are commonly used by businesses handling client funds, nonprofits, and companies with employees in sensitive financial roles. Some contracts or licensing boards may also require them.
What’s the difference between a fidelity bond and insurance?
Fidelity bonds are a type of insurance but specifically cover intentional dishonest acts by employees. Traditional liability policies don’t cover internal theft.
Are fidelity bonds required by law?
They aren’t always required, but some industries, like finance, janitorial services, or government contractors, may be mandated to carry them as part of doing business or obtaining licensure.