Among the different forms of insurance you can consider for your business, you need to think also fidelity bonds. Although called bonds, these obligations are really a form of insurance protection that provides coverage for losses you may incur due to fraudulent acts committed by others. When it comes to your business, fidelity bonds will insure your company for losses caused by dishonest acts of your employees. Fidelity bonds protects your business from monetary or property theft or employee misconduct that can result in financial loss.
Fidelity bonds include:
– Proprietary and Market ERISA
– Financial and Mutual Funds
– Excess Coverage
– Commercial Crime
It is crucial for you to report the wrongful act (theft, fraud…) to your insurance company when money or property goes missing, regardless if you have proof of responsibility or not. You need to make sure that you do not miss the claim on your deadline. Once submitted, your insurance company should open an investigation in an effort to collect all the facts and process the claim.
That being said, it is important for you to understand what your coverage includes before submitting a claim. As we have shared in previous blog posts, any insurance coverage could include exclusions and limitation.
Self-employed individuals do not qualify for fidelity bonds but should consider surety bonds. Geared towards employers, fidelity bonds come in the form of a two-party agreement. That being said, as discussed in our previous blog, surety bonds are presented in the form of a three-party agreement offering coverage for financial loss in case a contract cannot or was not fulfilled. Click HERE to read more about Surety Bonds.