Fidelity Bonds

What is a Fidelity Bond? [Is it the same as Employee Dishonesty and Commercial Crime Coverage?]

As the owner of a business, you want to do everything within your power to ensure you staff your team with ethically upstanding employees. Unfortunately, even with extensive background checks ran on potential candidates, your business is vulnerable to theft and fraud by an employee. For this reason, business owners are recommended to get a Fidelity Bond to protect themselves and their business from loss due to an employee’s dishonest actions.

A Fidelity Bond serves as protection from losses to either your clients or you and your business if an employee steals or performs fraud.

There are 3 main types of Fidelity Bonds to consider when shopping for a policy. The type of policy you should choose depends on the coverage you want for your business.

Are you interested in recouping your loss if your employee steals from your business?

Or, are you looking to offer your customers peace of mind by having coverage to protect their belongings from theft by your employee?

Maybe you want coverage that implements both types of coverage.

Our clients share their experience with getting their bonds below:

Easiest system to use and, by far, the fastest company with providing E&O and Surety bond insurance. HIGHLY recommend!
Mortgage H.
Mortgage H.
20:51 02 Mar 22
Surety Solutions goes above and beyond their duty to make their customer feel confident that they are choosing the right company. Jessi Wimer personally helped me through the process. She was very informative and made sure that every concern I had was dealt with in the most professional and efficient way. Thank you for your hard work!
Chris L.
Chris L.
17:07 08 Feb 22
Excellent service; they exceeded my expectations in timeliness and professionalism.
Bridgette M. B.
Bridgette M. B.
23:24 10 Dec 21
Client services provided quick and accurate responses.
James G.
James G.
17:49 30 Nov 21
Very helpful and they respond quickly to any questions.
Eva Hammel H.
Eva Hammel H.
16:46 30 Nov 21
Katrina Fearn, Client Service Manager at Surety, is an absolute pleasure to work with!! She is always highly responsive, and has provided me nothing but excellent service since our first interaction. I highly recommend working with her and the Surety team. They will always go above and beyond. Thank you for all that you've done!
Zakieh A.
Zakieh A.
16:38 04 Nov 21
I have been working with Steve Shike and he has been so helpful. I purchased the wrong bond and Steve instantly requested a refund on my behalf and called back with the good news. I appreciate him for helping me figure out my situation in such a timely matter. Thank you Steve for responding to my calls and emails promptly.
Ashley W.
Ashley W.
18:25 10 Aug 21
Gerry J.
Gerry J.
16:30 08 Aug 21
Katrina and Surety Solutions was awesome to work with and made the process seamless. Even after I, PERSONALLY, made a mistake and caused a delay, Katrina was able to spot my mistake and kindly address the error while still delivering my bond as if nothing had happened.I have nothing but good things to say about Surety Solutions.
Xavier A.
Xavier A.
15:40 22 Jul 21
jerry T.
jerry T.
04:44 03 Jul 21
Katrina and Surety Solutions were very helpful and fast. I needed to change the bond I ordered and they handled that within minutes. Their response time to emails and request were great and that is why I will continue to work them both. All I ask for is relatively decent response time when there are issues that need resolved and Katrina far exceeded that and was friendly on top of everything else. Well done.Kris
Kristopher M.
Kristopher M.
14:23 24 Jun 21
Grace answered the phone immediately with a positive attitude and willingness to help. She followed through professionally and promptly through entire process.
Danny S.
Danny S.
14:41 15 Jun 21
Surety Solutions has been the most amazing and easiest company to work with on Bonds in my past 17 years of doing insurance. They are very quick to respond and very personal to work with. Jake Durrant is absolutely the best!
Bonnie A.
Bonnie A.
20:39 20 May 21
Suzie T.
Suzie T.
17:14 07 May 21
Easy experience.
Tonya B.
Tonya B.
01:18 21 Apr 21
I had the pleasure of working with Katrina Fearn to obtain mortgage broker surety bonds and I can say with zero hesitation, that she is wonderful to work with. Extremely responsive, communicative and helpful. Surety Solutions + Katrina = Great Partnership. Thanks!!!
Ryan M.
Ryan M.
20:18 19 Apr 21
Can't say enough good things about Katrina Fearn, she was exceptionally prompt, responsive and a true professional in getting me the bond in a timely manner. Just amazing customer service.
Umesh M.
Umesh M.
23:34 07 Apr 21
I needed a copy of my bond and with people working form home I thought is was going to take a long time. I got an email with the copy of my bond with in minutes. Never seen anything like that. Very Professional and fast response. thank you for good business ethic
Ernesto U.
Ernesto U.
19:08 10 Feb 21
Just obtained Mortgage Broker Surety Bond for two states. not only the price was right but service and professionalism exceeded my expectations. i can't thank Steve enough and wish i knew them sooner.
Ruslan K.
Ruslan K.
22:43 08 Jan 21
I bought a surety bond for my business. The name on the application has my middle name on it and the policy didn't. That would or could have created a problem. I wrote to customer service to complain. Well not complain but ask for it to be changed. Since it was Thanksgiving weekend I wasn't expecting to hear back till this week sometime. Well to my surprise it was "Very" Quickly. JD was very helpful and professional. Fixed it then contacted me with the corrected version. Couldn't be happier. " Good Business is Good Business"
MrDarryk
MrDarryk
05:17 01 Dec 20
JP M.
JP M.
01:46 04 Nov 20
Amazing customer service and friendly and informative reps.
Obsesion H.
Obsesion H.
04:45 26 Oct 20
Surety solutions handled my request for a Guardianship Bond professionally, with great care and provided great value to my family. Of all of the insurance companies I contacted for my need, Surety Solutions was by far the most responsive, courteous and knowledgeable. I very much appreciate their fine service!!
Irena S.
Irena S.
03:00 25 Sep 20
The entire staff from Jake to Katrina were more than professional and bent over backwards to meet mine and The State of California's requirements
Kirk G.
Kirk G.
19:10 23 Jun 20
This process could not have been easier! Mr. Chipman sent me an email link and I just followed the steps. I highly recommend Mr. Beau Chipman to anyone who needs this service.
Sharon H.
Sharon H.
23:29 28 Apr 20
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We’ve detailed the different types of available Fidelity Bonds below.

Types of Fidelity Bonds:

Business Service Bond / Janitorial Bond

This type of bond protects your clients if your employee steals from them. Businesses with employees working at the client’s property, such as a cleaning or landscaping company, generally purchase this policy.

Employee Dishonesty Bond / Commercial Crime Policy

If an employee steals or embezzles from you or your business, you’ll be thankful to have this commercial crime coverage. Please note, most crime policies have a conviction clause, meaning there isn’t a payout on a claim if you don’t prosecute your employee.

Unlike the 2 Fidelity Bond types above, an ERISA Fidelity Bond isn’t optional. Plan administrators of employee benefit, pension and 401k plans must meet the bond requirement of the U.S. Department of Labor. When viewing quotes, select a minimum bond amount of $10,000 or 10% of the total value of the plan assets handled in the previous year; whichever is more.

The ERISA Bond protects the participants and beneficiaries of employee benefit, pension and 401k plans from financial loss if the plan administrator mishandles the funds. The plan administrator is responsible for repaying the surety back in full when the surety pays out on a valid claim.

Select your ERISA Bond amount to get free quotes

The plan administer may choose to purchase Fiduciary Insurance to have coverage for themselves. Fiduciary Insurance is advised optional coverage, but not a requirement.

View more information on ERISA Bonds.

Who does the policy cover?

Typically, a Fidelity Bond includes coverage for all employees within a business. However, some policies only cover specific employees, such as the Employee Dishonesty Bond / Commercial Crime Fidelity Bond.

When determining the right coverage for your business, be sure to read all the details for each type of policy.  

Individuals receiving coverage from the bond typically include:

  • Directors

     

  • Employees (Current & Former)

     

  • Members

     

  • Partners

     

  • Seasonal (temporary) Employees

     

  • Trustees

Fidelity Bond vs Surety Bond

Although not a true surety product, Fidelity Bonds are often categorized as a Surety Bond. They both provide insurance coverage, however they operate differently. Fidelity Bonds closer resemble traditional insurance policies, whereas Surety Bonds are more of a mix of insurance and a line of credit.

Surety Bonds are a 3-party contract between the principal (you), surety company and obligee (entity requiring you to have a bond). Whereas, Fidelity Bonds are typically an optional 2-party contract between the principal and the insurer.

When a claim is made on a Surety Bond, the surety investigates the claim to determine if it’s valid. The surety will pay the claimant (usually a customer of the principal) up to the full bond amount in the event of a valid claim. The principal is responsible for repaying the surety back in full. In contrast, Fidelity Bond claims are made by the principal to collect when their employee causes loss due to dishonest actions.

Learn more about Surety Bonds and the types of businesses that need them.

What happens if a claim is made?

When deciding on the type of Fidelity coverage you want for your business, it’s important to look over the details of the policy. Just as any other insurance policy, you’ll have exclusions and limitations on your coverage.

Many policies include a conviction clause, meaning a claim will not be processed unless the employee is convicted of a crime with the police. The surety company holding your bond will conduct an investigation on the claim to determine eligibility for a payout on the policy.

How much does a Fidelity Bond cost? [What is the policy premium?]

Taking into consideration the amount of coverage a Fidelity Bond provides, they are relatively inexpensive. Ultimately, Fidelity Bond cost depends on the amount of coverage you want. However, our Fidelity Bonds start as low as $100 and are renewed annually.

Where to get a Fidelity Bond

Our partnerships with industry leading surety companies allows us to offer competitive prices when quoting your bond. However, as important as securing your Fidelity Bond at a reasonable cost is, you also want to be sure you get the fidelity plan that meets your business coverage needs.

We’re happy to assist you with any questions you have regarding our available Fidelity Bond products. Send us a message, email info@suretysolutions.com or call our office at (866) 722-9239 to speak with a Fidelity Bond professional.

Additional Surety Bond Resources

Find answers to frequently asked Surety Bond questions.

Learn about the security Fidelity Bonds provide.

What is the difference between a Surety Bond and traditional insurance?

Require another type of Surety Bond? Pick your state below.

Select your state:

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