Building Owners » Crime / Fidelity

What is a Fidelity Bond?

A fidelity bond protects an employer from financial loss due to dishonest acts of a covered employee. For a loss to be covered the employer must lose money and the employee must also obtain a financial benefit from the act. The loss can be the result of the employee's theft of money, securities, or other property of the insured. In general, employee dishonesty policies are written on a blanket basis, so that all employees are covered.

Millions of dollars are lost every year due to employee dishonesty. Businesses suffer severe financial damage and can end up in bankruptcy. Some instances are one-time theft occurrences, but the large losses result from long-term, ongoing schemes that go undetected for months, and sometimes years.

Most insurance carriers who provide coverage for employee dishonesty use the new Simplified Crime policy or their own specialized forms which include several different types of loss. It is important to note that multiple acts committed by the same employee or group of employees in collusion are considered to be one loss regardless of the time frame involved. It is important to take this under advisement when deciding on an appropriate limit. A person or persons operating undetected for any length of time could prove costly if adequate coverage is not in place.


1/3 of all employees admitted to stealing
from their employers in the previous year.

Designed by: