What is a fidelity bond?
Fidelity bonds explained
Transcript: What Are Fidelity Bonds?
Man: I heard fidelity bonds can help protect my business. Can you explain exactly what they are?
JW: Of course! Fidelity bonds are insurance that protect against employee dishonesty such as theft and property damage. However, there are different types of fidelity bonds that provide different kinds of protection.
Man: As a business owner, I want to protect myself from employee embezzlement. Which type of fidelity bond will protect me?
JW: An employee dishonesty bond will protect you from dishonest employees who may commit theft, burglary, forgery and embezzlement.
Man: Our business often requires us to go to our clients homes. Does an employee dishonesty bond protect my customers too?
JW: No. You will need a different type of fidelity bond called a business service bond. A business service bond protects your client's personal property from loss and damage that may be caused by your employees.
Man: Are there any other types of fidelity bonds I should know about?
JW: Yes. The last type is ERISA bonds. They are required by law to protect employee benefit plans like 401Ks from fraudulent plan managers.
Man: How are fidelity bond rates determined?
JW: Costs are based on your type of business, the dollar amount of coverage you need, and the number of employees included on the bond.
Man: That all makes sense! I'll apply on online and get the bonds I need to protect my company and clients.
JW: I like the way you think.
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