Protecting Businesses From Fraud, Theft, & Embezzlement
Fidelity bonds, also known as employee dishonesty insurance, are designed to protect businesses against financial losses resulting from employee dishonesty, fraud, or theft. With over 50 years of experience in the insurance industry, you can rely on King Risk Partners to provide custom-tailored coverage to protect your business from monetary losses. The experienced agents with our insurance company can help you obtain a fidelity bond quickly and at an affordable rate!
Our team offers a simple, straightforward bonding process. Contact us today to learn more about fidelity bonds and take the first step toward getting bonded!
What Is A Fidelity Bond?
A fidelity bond is technically a type of surety bond. However, in practice, fidelity bonds function much more like business insurance. These bonds are designed to protect employers from financial losses resulting from employees’ dishonest actions, such as fraud or theft of cash or inventory. In the event that an employee commits a “dishonest act” that’s covered under the terms of the bond, the business can file a claim against the bond to recover any financial losses. Every business should at least consider a fidelity bond as an additional layer of financial protection.
Types Of Fidelity Surety Bonds
There are several different types of fidelity bonds available, each intended to address different business risks and employer needs. A few of the most common types of fidelity bonds include the following.
- Employee Dishonesty Bonds: Protect businesses from financial losses resulting from employee theft or other fraudulent acts.
- Business Service Bonds: Protect against dishonest acts committed by employees working on a client’s property.
- ERISA Bonds: Required by law to protect employee benefit plans, such as 401(k)s or pension plans.
Fidelity bonds can be customized to cover specific roles, individuals, or an entire workforce. These bonds are especially common in businesses where workers handle money or other valuable assets.
Frequently Asked Questions
Businesses across many industries can benefit from fidelity bonds, especially those that handle cash, process financial transactions, or store sensitive client information. A few common examples of businesses that may need a fidelity surety bond include:
- Companies whose employees enter client premises
- Financial institutions
- Service providers
- Retailers
- Property managers
- IT contractors
The exact cost of a fidelity bond will vary based on several factors. Fortunately, the bond’s cost, referred to as the bond premium, will only be a small percentage of the total coverage amount. A few factors that can affect the cost of a fidelity bond include:
- The total bond amount
- Industry risk level
- Employee count
- Credit score
Applicants with a healthy credit score can pay as little as 1% of the total bond amount. The team of experienced surety agents with King Risk Partners can help you secure your bond at an affordable rate.
Yes, it is still possible to get bonded even with a less-than-ideal credit score. While a healthy credit score can help you secure lower premiums, surety companies consider a variety of factors beyond just credit score. Here at King Risk Partners, we have experience helping employers across a range of financial backgrounds secure the bonds they need to protect their business. Our team can review your financial situation, explore available options, and help you secure a bond at an affordable rate.
That’s easy; call King Risk Partners. Our trusted surety specialists streamline the application process and provide guidance at every step to ensure a fast, hassle-free bonding experience. Ready to get started? Contact us today to take the first step toward getting bonded!