Fidelity Surety Bonds for Employees

July 23rd, 2010 by admin

Fidelity surety bonds for employees are commonly called employee dishonesty bonds. This is a type of bond that shields employers from losses in the event that the employees named in the bonds commit an act of dishonesty or abandonment of duty that cause damages to a third party.Intentionally dishonest activities such as fraud, thievery, forgery and larceny are covered. Loss of money, jewelry and other important properties due to such acts are covered in the bond, which means the employer is not liable, the surety company is.For businesses that have a large number of employees, a blanket fidelity bond is usually obtained. Under the blanket fidelity bonds are two types: 1) the blanket position bond and 2) the commercial blanket bond. With the blanket position bond, the coverage limit amount is for each employee doing a dishonest act. On the other hand, with the commercial blanket bond, the coverage limit amount is the sum for all employees doing dishonest acts.Other companies make use of the Schedule Fidelity surety bond, which covers all employees but with different levels of coverage. The coverage depends on the employee position and risk. A schedule of employee name, position and coverage is attached to such surety bonds.

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