Fidelity Bonds
Fidelity bonds protect your business against financial losses caused by employee theft, fraud, forgery, and other dishonest acts. This type of insurance is commonly required for licensed professionals, contractors, and businesses that handle client funds or sensitive financial information.
We offer the following Fidelity Bonds bonds:
Filter Bonds
What a Fidelity Bond Covers
A fidelity bond comes into effect when a covered employee or contractor commits a dishonest or fraudulent act that results in a direct financial loss to your business or organization.
Common situations where fidelity bond coverage may apply include:
- Theft of money, inventory, or business property
- Embezzlement or misappropriation of funds
- Forgery or alteration of financial or legal documents
- Fraudulent electronic or financial transactions
Depending on the type of fidelity bond, the following groups may be covered:
- Employees of your business
- Specifically named employees under a schedule bond
- All employees covered under a blanket fidelity bond
- Independent contractors or subcontractors covered by a third-party fidelity bond
What Fidelity Bonds Don’t Cover
While fidelity bonds provide important protection, they don’t cover every type of loss. Common fidelity bond exclusions include:
- Losses caused by business owners, partners, or officers
- Accounting errors or poor financial decisions
- Losses discovered outside the bond’s coverage period
- Acts not specifically defined as covered misconduct
- Indirect or consequential losses
How to File a Fidelity Bond Claim
If your business suffers a loss due to a dishonest act from an employee or contractor, here’s how to submit a fidelity bond claim to recoup the financial loss.
1. Identify the loss: Gather and review evidence of employee theft, fraud, or other dishonest conduct.
2. Document the loss: Compile financial records, transaction histories, internal audits, and supporting documentation to establish the cause and amount of the loss.
3. Submit the claim: Send the fidelity bond claim to the surety that issued your bond along with any required documentation.
4. Wait for review: The surety reviews the claim to confirm coverage and verify eligibility under the bond terms.
5. Receive payment: If the claim is approved, expect to receive payment up to the bond’s coverage limit.
Claims must typically be filed within the bond’s discovery period and in accordance with the fidelity bond’s terms.
Secure Your Fidelity Bond Today
Protect your business against employee dishonesty with a fidelity bond from NNA Surety. Call 855-431-7687 or complete our request form to get started.
The Simple Bonding Process
