Fidelity bond is in essence an insurance for your business operation. It is often bought to cover business owners from all kinds of property or financial losses, caused by hiring incompetent or risky employees. Many fidelity bond services are also a traditional insurance company. As the result buying fidelity bond from your own insurance company may benefit you, because of the possibility of lower premium and extra perks. The bond covers you against failure during work, theft and financial losses. The covered employee can be determined by specific department or the entire company, certainly the premium needed for an accounting employee and a janitor is different, due to the unique risks involved for each workers.
Many fidelity bond companies will agree to cover up losses until up to $30,000 after an incident or accident. The bond may serve as an enticement for employers to hire hi-risk workers.
Bond coverage work this way,
The coverage is based by the nature of work and the value of related properties
Bonds can be issued until the maximum value. The increment of bond value is usually around $5000. The bond usually has no deductible amount. It will be implemented after the employee go to work for the first time. The bond contract is usually sent to your employer and it will be expire after six months.
This is the common way fidelity bonds work, however your company may enforce a unique requirements that wouldn’t be found elsewhere. Ask the salesperson, whether there is anything different with the fidelity bond program you want to apply. But still, trust your instinct, a fidelity bond company may give you a weird requirements, it could be a good idea to find another service. To know if something is unusual, you should check with several service before buying and find repeatable patterns.
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