What is Fidelity Insurance?
Fidelity insurance, also called a dishonesty bond or fidelity bond, protects bondholders from fraud. It can protect businesses from fraudulent employees or homeowners from fraudulent companies whose employees may try to take advantage of them. There are two types of fidelity insurance – first- and third-party. First-party fidelity insurance or dishonesty bonds protect businesses from fraudulent employees. Third-party fidelity insurance protects companies and people who work with independent contractors or consultants. All dishonesty bonds cover forgery, theft, and other dishonest acts, as well as the losses incurred from these acts.
Types of Fidelity Bonds
You may need more than one type of dishonesty bond, depending on your business and how often you employ consultants or contractors. At Smith Bond and Surety, our team provides several types of fidelity insurance and works with each client to determine the best insurance plan for his or her needs.
The most common fidelity insurance we provide is the employee dishonesty bond, which protects you, your money, and your property from theft, forgery, and other fraudulent acts, as well as the losses these acts incur. The employee dishonesty bond protects you from misconduct not already covered in your insurance.
Smith Bond and Surety also provides service bonds for janitorial, construction, and other companies from which you might hire independent employees, contractors, or consultants. This type of dishonesty bond protects you if, for instance, a construction company tries to cheat you, leaves you with unpaid supply bills, does shoddy work, or walks away from a project. It also protects you if a janitorial or similar service steals from you, damages your building, damages or destroys property, or compromises the health and safety of other employees.
How Do I Obtain a Fidelity Bond?
To obtain fidelity insurance, it’s best to go through a well-respected company such as Smith Bond and Surety. We serve clients in Michigan, Ohio, and Pennsylvania and will soon expand to West Virginia. We are also available to help clients in states outside our service areas. We will familiarize you with your state’s fidelity insurance laws and will make sure you obtain the bonding and insurance you need. Contact us for a free consultation.