top of page
12647348_1396 [Converted]-01-01.png


Fidelity Bonds, also known as Employee Dishonesty Coverage, are a type of insurance designed to protect businesses from financial losses resulting from dishonest or fraudulent acts committed by employees. This coverage provides a safeguard against theft, embezzlement, and other forms of employee dishonesty. Fidelity Bonds are especially relevant for businesses that handle financial transactions, have employees with access to sensitive information, or deal with valuable assets.


Here Are Key Features And Aspects Of Fidelity Bonds Insurance

Coverage for Employee Dishonesty

Fidelity Bonds specifically cover losses arising from dishonest acts of employees. This can include theft of money, securities, or other property owned by the employer.

Types of Fidelity Bonds

  • First-Party Bonds: Protect the employer against losses caused by dishonest acts of its own employees.

  • Third-Party Bonds: Provide coverage when an employer suffers a loss due to dishonest acts committed by employees of a client or customer.

Range of Coverage

Fidelity Bonds can cover a wide range of dishonest acts, including theft, forgery, fraud, embezzlement, and misappropriation of funds. The coverage can extend to various forms of property and financial assets.


Policies can be tailored to the specific needs and risks of a business. The coverage limits and terms can be adjusted based on factors such as the size of the business, industry, and the nature of the assets being protected.

Business Size and Type

Fidelity Bonds are applicable to businesses of all sizes. Small businesses, as well as large corporations, can benefit from this type of coverage. The nature of the business, especially if it involves handling significant financial transactions or valuable assets, often determines the need for Fidelity Bonds.

Claims Process

In the event of a covered loss, the business can file a claim with the insurance company. The claims process typically involves providing documentation and evidence of the dishonest act. Once approved, the insurance company compensates the business for the covered losses, up to the policy limits.

Risk Mitigation

While Fidelity Bonds provide financial protection, businesses are encouraged to implement internal controls and risk management practices to prevent and detect dishonest acts. This may include background checks on employees, segregation of duties, and regular audits.

Legal Requirements

In some industries, Fidelity Bonds may be a legal or contractual requirement. For example, businesses in the financial sector or those handling government contracts may be obligated to carry Fidelity Bonds.

Fidelity Bonds play a crucial role in protecting businesses from the financial repercussions of employee dishonesty. By providing coverage for losses resulting from fraudulent activities, these bonds contribute to the overall risk management strategy of businesses, helping to build trust and confidence in their operations.

Annagard Insurance Agency is always here for all your insurance needs. Please feel free to call us at any time, we will be delighted to speak with you.

bottom of page