A fidelity bond can help protect you if your business entrusts employees to handle cash or other valuable assets. Even when we carefully screen and supervise employees, our businesses can sometimes be victims of employee theft.
There are different types of fidelity bonds, such as business services bonds, standard employee dishonesty bonds and ERISA bonds.
A business service bond helps protect you if your employee acts dishonestly while on the customer’s property, resulting in the loss of a customer’s money, equipment, supplies and personal belongings. This fidelity bond can help customers trust your business, especially if you work in janitorial services, contracting or pet or home sitting.
With a standard employee dishonesty bond, your business will be protected from loss if an employee or group of employees engages in fraudulent activities causing theft of money, securities or other property. If you have a professional office or non-profit organization, this might be the right type of fidelity bond for you.
An ERISA bond comes from the Employee Retirement Income Security Act of 1974. An ERISA bond protects other employees and their beneficiaries from dishonest acts by the person who handles employee benefit or pension plans. The act requires pension plan trustees to have fidelity bond coverage equal to at least 10% of the total plan.s assets.
Not sure which one is right for your business? We can help. Ask your Smart Insurance professional about fidelity bonds.
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