Crime or Fidelity Bonds

Wherever employees are located, there exists the possibility of theft. Even companies with the greatest internal controls, systems, policies and procedures have experienced employee and third-party pilferage. For example, an employee with sensitive information creates a well calculated plan, perhaps in collusion with other employees, creating substantial loss. Regardless of whether the employee(s) is new or a 20-year veteran, your risk is not reduced. In cases such as this, though assets diverted may be small and under most thresholds, the losses can accumulate significantly over time.

It is estimated that nearly 5% of most companies' assets are absconded with on a yearly basis. Moreover, vendor-related crimes have been on the rise and losses are staggering. A Crime or Fidelity Bond protects companies from the financial impact of employee theft or dishonesty. The following types of Fidelity Bonds are available:

  • Commercial Crime Bond
  • ERISA Bond
    (In 1974, the Employee Retirement Income Security Act (ERISA) was enacted to regulate most types of employee benefit plans. This Act requires that a fidelity bond be in place to cover the fiduciary (those responsible for managing the plan) and those persons who handle funds or other property of such a plan. These bonds are intended to protect the plans from dishonesty and fraud committed by individuals who are associated with them.)
  • Investment Company Bond
  • Stockbroker Blanket Bond
  • Banker Blanket Bond


Commercial Insurance