Fidelity Bond Guide

SuretyBonds.com is the nation’s top surety provider. We offer the industry’s best service and fastest delivery for fidelity and employee dishonesty bonds. 

What Is a Fidelity Bond? 

A fidelity bond is a type of insurance coverage that protects policyholders from losses incurred by dishonest employees, volunteers or officers. Sometimes fidelity bonds are required for organizations at the federal, state or local level. In other cases, businesses get bonded voluntarily to enhance their reputation or to qualify for a specific project. 

It’s worth noting that many license and permit surety bonds have employee dishonesty clauses written into their statutes but are still considered license obligations rather than fidelity bonds. Learn more about fidelity bonds vs other surety bonds.

How Do Fidelity Bonds Work?

A fidelity bond creates a legally-binding contract between three parties: 

1. Principal: The employees of the company being covered by the bond
2. Surety: The company providing and backing the bond
3. Obligee: The company purchasing and being insured by the bond 

The bond creates a means of financial compensation for losses due to acts such as embezzlement of employee 401(k) plan funds, theft of client property, or mismanagement of company funds. 

How Much Do Fidelity Bonds Cost?

Fidelity bonds typically cost 1–3% of the total bond amount. For example, a $100,000 fidelity bond could cost just $1,000 for a highly-qualified applicant. However, this percentage may vary depending on circumstances, including:

• Specific bond type
• Business size and type
• Number of employees covered 
• Personal financials
• Business financials

Get an instant price estimate using our surety bond cost calculator. 

How to Get a Fidelity Bond

To get your fidelity bond, just submit a quick online application. It only takes a couple minutes, then a SuretyBonds.com rep will contact you within one business day. You’ll receive a free bond quote, which you can purchase at your convenience. 

Common Types of Fidelity Bonds

There are various fidelity bond categories to cover different types of organizations and employee liabilities. Here are the primary fidelity bond types we offer:  

• Business Services Bonds: Protect clients from theft by dishonest employees
• Employee Theft/Dishonesty Bonds: Protect companies from employee theft and fraud 
• ERISA Bonds: Protect employees from fraud by 401(k) plan administrators
• Union Wage and Welfare Bond: Guarantees employers will honor all financial obligations to union-member employees.
• Fidelity/Dishonesty Bonds for Non-Profits: Protect non-profit organizations from dishonest acts by officers 
• Janitorial Services Bonds: Protect cleaning service clients from employee theft
• Volunteer-In-Parks Bonds: Protect the U.S. National Parks System from volunteer theft 

There are other fidelity bond types at the state level such as Ohio Home Health Services Bonds and California Home Care Dishonesty Bonds.