Fidelity Bonds - VA, DC, MD

A fidelity bond is a form of insurance protection that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals. It usually insures a business for losses caused by the dishonest acts of its employees.

While called bonds, these obligations protect an employer from employee dishonesty losses are similar to insurance policies. They protect against losses of company monies, securities, and other property due to the actions of employees who have a manifest intent to cause the company loss. Fidelity coverage is often offered in combination with other forms of crime-insurance policies, such as burglary, robbery computer theft, mysterious disappearance, fraud and forgery, all with the purpose of the protection of company assets.

First-Party Vs. Third-Party Fidelity Bonds

There are two types of fidelity bonds: first-party and third-party. First-party fidelity bonds protect businesses against intentionally dishonest acts committed by employees of that business. Third-party fidelity bonds protect businesses against intentionally wrongful acts committed by people working for them on a contract basis (e.g., consultants or independent contractors).

Types of Fidelity Bond Coverage

• Blanket coverage: Written in the name of the business with all employees covered. Can be endorsed with higher coverage on positions with greater exposure and can specifically exclude other positions. Good option for large companies and those with high rates of employee turnover.
• Scheduled coverage: Employee name or position is listed with specific amount of coverage on each. Used when organization is small and exposure is limited.

Contact TriState Business Insurance for a free consultation and insurance quote. Let us handle protecting your business with an appropriate insurance package so you can spend your time running your business!

Call Us: (877) 357-3963
Email: info@tristatebi.com