Get a quote


Join Our Distribution List Today!

Need help managing your business risks during COVID-19? – CLICK HERE FOR INFO YOU CAN USE
ALIGNED Insurance

Call Toll Free

Fidelity Surety Bond

ALIGNED - CLICK HERE to get a FREE insurance quote now - Header - June 2021
Want insurance? Click HERE to get a FREE QUOTE!

Background checks are important, even obligatory when your employees will be handling cash, sensitive information, inventory or working with vulnerable persons. But a background check alone isn’t enough to protect your business from employee theft, fraud and embezzlement. Records sometimes slip through the cracks, people don’t always get caught and sometimes an employee’s situation changes, making them desperate. Without a loss-management / fraud-prevention system and a fidelity surety bond, your business is vulnerable to theft, fraud and potentially massive losses.

What is a Fidelity Surety Bond?

A fidelity surety bond (or simply, fidelity bond) is a guarantee made by the issuer of the fidelity bond to cover any losses suffered by the policyholder due to the dishonesty of a specific person. That usually means that a fidelity bond is taken out by an employer to protect themselves from the fraudulent actions of one or more employees.

Those losses can be monetary or physical, such as jewellery or electronics. Losses can be caused by both upper management and staff alike and a fidelity bond can be used to cover deliberate, accidental and negligent acts of the employee. For employers who hire staff that work with cash, valuables and information that can be used fraudulently, a fidelity surety bond is a must.

How is a Fidelity Surety Bond Different from an Employee Dishonesty Insurance Policy?

Fidelity Surety Bonds
Looking for Fidelity Surety Bonds in Canada? Contact us HERE to get an online quote now!

Generally, an Employee Dishonesty policy, or Crime Insurance / Fidelity Insurance, will cover losses caused by employees by what’s known in the insurance industry as the 3 Ds:

  • Dishonesty
  • Disappearance
  • Destruction

Employee dishonesty insurance has evolved over the years and can include acts such as credit card and computer fraud, but for comprehensive coverage and protection, often a Crime/Employee dishonesty insurance policy will be packaged together with a fidelity surety bond. 

What Types of Fidelity Surety Bonds Are There?

There are two types of fidelity surety bonds:

Blanket Fidelity Bonds

These bonds are recommended for non-profits and companies with a lot of employees and/or high employee turnover. It offers ‘blanket’ coverage meaning that all employees are covered and the limit of the fidelity bond is based on all losses added together (the aggregate amount). New employees are automatically covered, and old ones are automatically removed as soon as they are no longer employed.   

Scheduled Fidelity Bonds

A scheduled fidelity bond is recommended for businesses with employees who handle more responsibility, have access to greater sums of money and/or are in positions of trust. A scheduled fidelity bond will only cover employees named in the bond. Each employee is bonded for a specific amount and the limit of liability applies to each name/position listed, or ‘scheduled’, on the bond.

At ALIGNED, We’re Experts at Protecting Your Business Because Commercial Insurance Is All We Do.

If you’d like more information on fidelity surety bonds, contact an ALIGNED advocate who is more than happy to help.
When you choose ALIGNED, you get a commercial insurance specialist advocating for your business to get you comprehensive protection from theft, fraud and loss at affordable rates. We work with Canada’s top insurance and bonding companies to ensure you get reliable protection from your fidelity surety bond. Contact an ALIGNED advocate to get a free quote on a fidelity surety bond in minutes.

Related Posts:

It’s time to get insurance value and choice aligned. Want Canadian business insurance that aligns with your bottom line? We can help. 365. Call us toll-free at 1-866-287-0448 or click to Get a Quote!

We’re ALIGNED across Canada. The ALIGNED Insurance National Operations Centre in Cambridge, Ontario supports our Toronto, Calgary and Vancouver offices. Our industry peers consistently recognize us as one of Canada’s best insurance teams. 100% Canadian-owned, we are super proud to be one of the fastest-growing insurance brokerages in the country.

We deliver e-news you can use. Get practical business insurance insights in your inbox every month. 19,000+ people subscribe to our free ALIGNMENT Matters e-news. Just click the JOIN OUR DISTRIBUTION LIST button – at the bottom of our homepage – to get connected.

365 | Get ALIGNED. Every day, Canadian business leaders read our insurance insights. Find us on LinkedIn, TwitterFacebookInstagram and YouTube.

Leave a Reply

Your email address will not be published. Required fields are marked *