What is a Fidelity Bond?
A fidelity bond, or employee dishonesty, is not insurance but it protects your business against specific losses that may occur from the dishonest acts of employees. The fidelity coverage guarantees that the insurance company will pay the insured business for money or other property lost because of dishonest acts of its employees, either named or by positions.
Why consider a fidelity bond?
We think every business needs a fidelity bond. The costs are very competitive and can be included within your business insurance program. A business owner purchases such a bond to protect himself or his business against fraudulent activities by an employee.
- Sixty percent of lost inventory is a result of employee theft.
- The FBI considers employee theft one of the fastest growing crimes in America
- The US Chamber of Commerce states that 20% of business bankruptcies are a result of employee theft.
Things to consider when purchasing a fidelity bond
- The application process asks questions about your financial and accounting procedures which can be beneficial to your business.
- We always recommend notifying all current and new employees that the bond is in place and that they may need to provide information.
- Embezzlements occur often but are rarely reported, and in only a few cases are publicized. Few people realize how common embezzling really is.
We can help you better understand your risks and help you manage the short application process. Call us today. Being an Independent Insurance Agency, US Select Insurance has the ability to offer broad access to local, regional, and national insurance carriers.
Filed Under: Blog, Business Insurance | Tagged With: bonds, Business Insurance, Fidelity insurance