Fidelity Bonds
What are Fidelity Bonds?
Fidelity bonds are a special type of insurance that provides your business cover for employee theft, which is why a lot of people refer to the insurance these bonds provide as employee theft insurance.

Fidelity bonds are important to help you recover from losses that an employee can cause by stealing anything your business owns or is responsible for, such as cash, office supplies, business equipment, and personal property.

Fidelity bonds are a popular insurance instrument, especially in industries and service sectors where employees are routinely trusted with valuable property or assets. This kind of coverage keeps you focused on the smooth operations of your business without worrying day and night about entrusting your employees with valuables that belong to your business or a customer.
Who needs Fidelity Bonds?
There is no telling when an employee becomes dishonest and runs away with valuable property that does not belong to them. Therefore, any business that involves frequent handling of valuable property or cash through its employees should get coverage from employee fraud insurance through fidelity bonds.

Depending on the nature of your business, you might be required by regulations to get this coverage. Here is a list of the kinds of businesses that often seek employee theft insurance through fidelity bonds.
  • Businesses who are expected to buy this insurance for a certain type of license
  • Businesses where employees carry out financial transactions in cash or otherwise
  • Businesses where routine activities include soliciting customer information
To sum up this list, one could say businesses within the financial services sectors should get fidelity bonds.
Fidelity Bonds coverage
Fidelity bonds coverage enables you to easily entrust valuable property and cash to your employees for smooth business activity. While that is a benefit of this type of insurance, the purpose of this instrument is to get coverage against fraudulent actions of employees. With this insurance in place, you get cover for embezzlement, theft, and fraud perpetrated by an employee.
What does Fidelity Bonds coverage include?
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.
Employee Theft insurance through Fidelity Bonds
Your fidelity bonds provide cover for both losses of your business property or any liability established on you for a third party's loss as a result of the misdeeds of one or more of your employees.

Due to the complex nature of fidelity bonds coverage, it is imperative that you purchase your bonds through a reliable commercial insurance agency with experience in providing this kind of insurance. At Ficke Insurance, we use our nationwide network of insurance providers to get you proper coverage from employee fraud and theft. Our partners' fidelity bonds provide cover for first-party asset and monetary loss, all or some of your employees based on your preference but definitely your subcontractors, and customer's liability claims.

To get more information about what your insurance policies should look like, contact one of our agents right now.