Why businesses obtain fidelity bonds
Unlike many license or contract bonds, fidelity bonds are often purchased voluntarily. They may help protect a business or its customers against covered dishonest acts by employees.
Common uses
- Business service and janitorial companies
- Employee dishonesty protection
- ERISA-related fidelity requirements
- Financial institution and specialized fidelity needs
Choosing the right protection
The appropriate bond depends on who needs protection, which employees or acts must be covered, the required limit, and any contract or regulatory language.