Fidelity Bonds

There are five most common types of fidelity bonds, and each has a special application.

Company owners often obtain business services bonds in order to get protection against fraudulent activities of their employees who work on clients' premises.

Janitorial bonds are a type of business services bonds but specialized for cleaning businesses.

Employee dishonesty bonds serve as a safety net for businesses against theft, burglary, forgery, and embezzlement that their employees may commit on the job against their business.

Financial institution bonds are similar to employee dishonesty bonds but targeted at financial institutions. They protect the business in case its employees commit burglary, robbery, or forgery of physical property or assets.

ERISA bonds are the only type of fidelity bonds which are legally required in certain situations. Individual and entities managing employee retirement plans have to obtain them, as per the Employee Retirement Income Security Act (ERISA).

The formulation of the price that you have to pay for your fidelity bond is based on a number of indicators. The type of your business certainly affects the premiums, as well as the security mechanisms that you have in place. Another important factor is the amount of coverage that you would like to obtain. Last but not least, the number of employees whom you want to cover with the fidelity bond also affects the price.

In the case of ERISA bonds, the pricing is formulated in a different way. The bond amount can be between $1,000 and $1,000,000, and depends on the types of assets that the managed employee benefit plan has.

No. Fidelity bonds are not like surety bonds, whose premiums are typically calculated on the basis of the business owner's personal credit score.

Lance Surety Bonds' experts are here to help. If you have any further questions about the way fidelity bonds work, don't hesitate to contact us at (877) 514-5146.