Fidelity Bond Insurance Debunked
Fidelity bond insurance may sound unnecessary, but the harsh reality is that nearly every business is eventually victimized by fraud or employee theft at some point. In this day and age, thieves (including your employees) do not need direct access to cash to steal from you; merchandise, supplies and securities are all fair game. You may also be susceptible to losses in the event that finished products or even raw materials are stolen right from under your nose. Essentially, any product can be a target for thieves if there is an opportunity to make a resale profit.
Fidelity Bond Insurance Coverage
Fidelity bond insurance was developed to deal with the limitations of other policies and extend protection to include the fraudulent activities of employees. While standard property and inland marine insurance policies provide some protection from criminal acts, they often do not cover losses resulting from employee dishonesty.
Fidelity Bond Insurance Coverage Benefits
While large companies are more likely to garner attention from in-house crime, smaller companies may actually be more vulnerable to employee theft. Smaller companies tend to pay less for doing the same job at a bigger company, so employees might may commit crimes by stealing from the company. Smaller companies also tend to trust their employees more and have fewer anti-fraud measures and internal controls in place, increasing their vulnerability to incidents of crime.
No matter the size of your company, employee crime remains a very real possibility, which is why it’s important to take steps to insure your business against losses with fidelity bond insurance.
An ALIGNED Advocate can provide expert guidance about fidelity bond insurance and risk management best practices for your organization. Talk to one of our advocates today about how we can help you secure the best products, services and insurance solutions for your business.
|ALIGNED Across Canada 100% Canadian owned, ALIGNED is a premiere insurance brokerage that serves more than 1,400 clients across the country. ALIGNED’s offices in Toronto, Calgary and Vancouver are supported by a national operations centre in Cambridge, Ontario. Uniquely within the industry, ALIGNED creates, negotiates and delivers the best business insurance and risk management strategies/solutions to organizations like yours.|