Crime Bonds
What is a Fidelity (Crime) Bond?
These types of bonds are meant to avert serious financial damages and losses to companies in the event of any fraud, forgery, alteration or embezzlement.
Crime Bonds are valuable insurance tools for any business, especially those dealing with money.
Fidelity Bond Types.
Fidelity bonds represent a high level of flexibility. There are currently two major types available.
The first is known as a First Party Fidelity Bond, which, in essence, is to protect a company from its employees if they steal something of the company assets, or commit fraud.
A First Party Fidelity Bond will cover nearly all company damages arising due to financial crimes against a company or its customers.
The second main type is a Third Party Fidelity Bond, which protects businesses under similar circumstances. However, a Third Party Fidelity Bond offers ultimate coverage against most illegal acts such as fraud, scams, or other thefts committed by employees.
Business Bonds vs Commercial Crime Bonds.
A Business Service Bond provides property owners with the protection from any theft that might take place by service providers.
It covers a wide range of employee types starting with contractors such as maintenance workers, house cleaners, landscapers, and even pet sitters.
A Commercial Crime Fidelity Bond on the other hand (also known as a Dishonesty Bond) is designed to protect your business from any fraud or embezzlement committed by employees that directly handle money like cashiers, bookkeepers, or other administrators entrusted with handling company finances.
It is also worth pointing out that an ERISA bond is the only bond required by law. It is a protective bond put into place to guard your company against any acts of fraud or dishonesty by persons responsible for handling plan funds and property.
ERISA bonds don’t protect the person handling the funds, they protect the funds themselves.
Fidelity Bond Coverage
Fidelity Bonds are considered as “blanket bonds,” we offer a wide range of coverages to protect you and your business from theft or fraud by employees. Typically, each insurance company has its criteria and policy for the coverage amounts.
Some Fidelity Bonds may only cover certain employees as stated in the bonded agreement. There are various ways that higher amounts of coverage than originally quoted may be obtained.
Original quotes or bond offers are based on the most competitive market rates.
If you’re considering a “blanket” Fidelity Bond, the following types of employees are covered:
- Current and Former Employees
- Business Partners
- Directors and Administrative Staff
- Members or Trustees of your Organization
- Temporary/Seasonal Employees
How Much Does a Fidelity Bond Cost?
A Fidelity Bond is both a practical and efficient business solution. They can easily cover up to $500,000 or more in loss from theft or fraud. Typically, a Fidelity Bond with comparable coverage can be obtained for just a few hundreds of dollars or less annually.
In many cases, companies can get $100,000+ coverage for just $300 a year, which equates to $25 a month. Taking into account the various protections included, the price for a Fidelity Bond is considerably low.
What Businesses Should Use Fidelity Bonds?
Any business will benefit from having a Fidelity Bond, as it secures not only company finances from unexpected theft and fraud, but also a variety of other potential dishonesty related crimes committed by employees.
In many cases, there are high-risk businesses which should consider investing in applying for a Fidelity Bond, such as;
- Brokerage Firms
- Cash Couriers
- Messenger and Courier Services
- Any businesses within the Food and Service Industry
- Shops, Cafes, Boutiques, etc.
- At-Home Care Companies
So if you’re looking to protect both your business and customers from theft, a Fidelity or Crime Bond is right up your street.
Having a Fidelity Bond means that less than a fraction of any losses will ever come out of YOUR pocket in the case of fraudulent acts.
How to Get a Fidelity Bond FAST!
Applying for a Fidelity Bond is not difficult, as we’ve simplified the process for you into easy to understand steps, which can be found on our Fidelity Bond application.
Finally, if you would like to speak to a live customer service representative to walk you through the process of applying and getting approved for a Fidelity bond today, we are here to answer all questions.
Our professionals are committed to easing the process for you. call us at (800) 921-1008, Live Chat with us below, contact our Bond Manager at Bonds@BFBond.com
AN INSURANCE AND BONDING AGENCY WORTH RECOMMENDING. SINCE 1949.
800.921.1008