There are all types of employees in the world and enough of them commit fraud against their employers that there is an insurance policy that covers against it. A fidelity bond is sometimes referred to as employee dishonesty insurance. A fidelity bond crime policy can protect a business from both monetary and physical losses.
What Is Fidelity Bond Crime Policy?
Fidelity bonds protect businesses against crimes perpetrated by their employees. There are three types of fidelity bonds: employee dishonesty bonds, business services bonds and ERISA bonds.
Employee dishonesty bonds protect against employees who steal property, security or money. Business service bonds protect consumers who have lost money, supplies, equipment or other property due to a fraudulent or dishonest act committed by an employee. ERISA bonds protect employees’ interests in the long run. ERISA stands for Employee Retirement Income Security Act and it aims to make sure that if the money in a business’s retirement plan is misused by the manager, it can be recovered.
Nobody wants to deal with dishonest employees but it is a sad fact of the business world. A fidelity bond crime policy can help ensure that the business can rectify any damage brought on by fraud or dishonesty.