Fidelity bonds may be used by employers to protect themselves against losses due to employees’ fraudulent activities. The majority of these policies are written on a blanket basis, though some scheduled policies are still available.
- Coverage includes loss of money, securities and other property
- Provides coverage for all employees, subject to the policy definitions
- Limit of liability is “per loss” applied on an occurrence basis
- All acts involving the same employee or group of employees are considered one occurrence
Surety Bonds provide monetary compensation if a company fails to perform specified acts within a stated period. For example, the surety bond would be responsible for fulfilling a contract if a contractor defaults.