Who Needs a Bond?
A fidelity bond protects businesses from financial losses resulting from employee dishonesty. This includes embezzlement, fraudulent transactions, and other dishonest activities. If an employee commits a crime while acting within the scope of his employment, the employer will likely face civil liability. In addition, the employer may be required to pay restitution to the victim.

Types of Bonds Available
Two central fidelity bonds are available: property and casualty (P&C) and surety. Property and casualty insurance covers the value of the stolen or damaged property, whereas a surety bond guarantees payment of court judgments.

How Much Does it Cost?
A P&C policy typically costs between $1,000-$10,000 per year, while a surety bond will cost between $5,000-$50,000 annually.

When Do I Need One?
If you own a business, you need a fidelity bond to protect yourself from losses caused by employee dishonesty. You should consider getting one when you hire employees. It’s also a good idea to get one if you work with contractors who provide services to your company.

How Long Does it Last?
A fidelity bond will cover you for up to $500,000 per claim. This means that if an employee steals money from your business, you only have to pay back what was stolen up to $500,00. After that, the insurance company pays out the rest of the money.