It is well established law in most states that a standard fidelity bond does not cover an insured’s liability to a third party, even though an employee’s dishonesty is what sets into motion a chain of events culminating in that liability.  An insured may not use a first party fidelity bond to deflect third party liability to its insurer.  The unambiguous language in a commercial crime policy (fidelity bond) defining a “direct loss” is the insurer’s safeguard prohibiting third party protection.  So what do you do if you need third party fidelity coverage?  Fortunately a third party fidelity bond as a stand-alone policy is available.

A third party fidelity bond is superlative and inexpensive protection for all types of economic sectors. Very small denomination bonds are useful for janitorial services (also known as janitorial services bonds or “dishonesty bonds”), all types of on-premises laborers, home care services, and the like. High penalty third-party fidelity bonds are more popular in the internet technology and financial services industry. Third party fidelity bonds can be written for a very broad variety of mercantile and thought companies. The following are considered business services bonds, which are a fidelity bond product.

  • HVAC, plumbing, artisan, remodeling, carpentry and general contractors.
  • Home inspectors, appraisers, cable, security system and A/V installers.
  • I.T. contractors, software developers and instructors, onsite system programmers.
  • Tow truck operators, repossessors and property recovery specialists.
  • Guard and security agencies that protect the property of third parties. specializes in underwriting fidelity bond risks for ALL business classes.  Third party fidelity bonds for TPAs, MGAs, title agencies, labor unions and other hazardous classes are part of Surety One, Inc.’s offer as well. We are bonding company that NEVER turns away a client. For more information visit us at, call (800) 373-2804 or email us at  for a third party fidelity bond application or for any fidelity coverage need.

Read more about this product on our third party fidelity bond program page. We offer third party crime coverage limits on a primary basis from $5mn to $10mn depending on business class, and excess thereafter on a non-admitted basis.

Are you seeking a fidelity bond specifically for compliance with ERISA? Click here to learn more.

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