Frequently Asked Questions: Fidelity Bonds

What is a fidelity bond?

Do fidelity bonds really protect organizations?

What are some common fidelity bonds?

What categories do fidelity bonds fall under?

What is a fidelity bond?
A fidelity bond is a bond which indemnifies the insured for loss caused by the dishonest and fraudulent acts of its covered employees. In addition, a fidelity bond typically covers the insured against the following:

• Forgery or alteration;
• Loss inside the premises caused by theft, disappearance and destruction, and robbery and safe burglary;
• Loss outside the premises caused by the robbery of a messenger.

These coverages are sometimes referred to a "crime coverage."
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Do fidelity bonds really protect organizations?
Annually writers of fidelity bonds and crime coverage incur over $300 million in losses by protecting organizations from risks that are present each day they are open for business: employee dishonesty, robbery, and burglary.
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What are some common fidelity bonds?
Fidelity bonds include Dishonesty Bonds, Janitorial Services Bonds, and Business Blanket Bonds.
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What categories do fidelity bonds fall under?
Fidelity bonds are divided into two primary categories: financial institutions (for example, banks, stock brokers, insurance companies, and financial companies) and banks for mercantile and governmental entities (non-financial institutions).
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