Typically, fidelity bonds coverage means cover from loss of money and assets perpetrated by a fraudulent employee. Since it is fraud and a crime, it assumes intent and, as such, the following list of situations thoroughly states how these crimes often occur and when your fidelity bonds cover comes into play:
- An employee forges your signature on a check to cash it out
- You discover counterfeit money in cash given to you by an employee
- You find evidence of money embezzled out of your company payments
- Your securities business goes through an audit and some transactions are unaccounted for
- A customer reports identity theft after they provided you staff their information
- One of the computers on your network was hacked into
Many other kinds of situations may emerge, as theft can be done in many ways. However, if you get your fidelity bonds coverage from the right insurance provider, you can rest assured these damages will be covered in your policy.
It should be noted that fidelity bonds do not cover certain losses, including errors and omissions caused by your employees, breach of contract claims, and physical harm or bodily injury.