{"id":1287,"date":"2013-06-28T03:16:05","date_gmt":"2013-06-28T03:16:05","guid":{"rendered":"http:\/\/suretyone.com\/blog\/?p=1287"},"modified":"2019-12-30T07:13:10","modified_gmt":"2019-12-30T07:13:10","slug":"fidelity-bond-the-importance-of-internal-controls","status":"publish","type":"post","link":"https:\/\/suretyone.com\/blog\/fidelity-bond-the-importance-of-internal-controls\/","title":{"rendered":"Fidelity Bond, the Importance of Internal Controls"},"content":{"rendered":"

The most important fidelity bond<\/a><\/strong> underwriting consideration is the presence and\u00a0strength\u00a0of “internal controls”.\u00a0A sound system of internal controls is an essential element of enterprise risk management. Every company with any significant employee dishonesty exposures should have formal internal control policies or a financial and accounting procedures manual. \u00a0A<\/strong>pplications and questionnaires for fidelity bonds most often group questions about internal controls under the heading of “separation of duties”, because essentially that is exactly what they are. The underwriter will want to satisfy him or herself that duties such as check writing, deposit functions, withdrawal\/funds transfer functions and \u00a0inventory management are absolutely separated from account reconciliations. \u00a0Failure to institute this clear separation will disqualify an applicant from fidelity bond<\/a><\/strong> coverage. \u00a0Additionally, there are physical safeguards that should be instituted to lessen the chance of a dishonesty loss such as limiting access to check books, petty cash drawers and valuable inventory. \u00a0Lastly, requiring employees to adhere to ethical standards in general and appropriately sanctioning those who refuse to do so, will lessen the likelihood that your enterprise will employ potential offenders for extended periods of time.<\/p>\n

The basic commercial crime coverage forms can be further broadened by negotiated endorsement. Do you have an “outside of the box” or “non-standard” fidelity risk? No problem. Do you need a special fidelity bond manuscripted for your particular need? No problem. We have an appetite!<\/p>\n

National surety bond leader<\/strong>, Surety One, Inc.<\/a> specializes in underwriting fidelity risks for ALL business classes. \u00a0Fidelity bonds for TPAs, MGAs, title agencies, labor unions and other hazardous classes are part of Surety One\u2019s offer as a bonding company that NEVER turns away an insured. \u00a0For more information visit us at SuretyOne.com<\/a>, call (800) 373-2804<\/span>, or email us at Underwriting@SuretyOne.com\u00a0for a fidelity bond<\/strong> application or further information about our commercial crime policy<\/strong> program.<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The most important fidelity bond underwriting consideration is the presence and\u00a0strength\u00a0of “internal controls”.\u00a0A sound system of internal controls is an essential element of enterprise risk management. Every company with any significant employee dishonesty exposures should have formal internal control policies… Continue Reading →<\/a><\/p>\n","protected":false},"author":1,"featured_media":2907,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[101],"tags":[107,105,106,272,273],"yoast_head":"\nFidelity Bonds and the Importance of Internal Controls<\/title>\n<meta name=\"description\" content=\"The most important fidelity bond underwriting consideration is the presence and strength of "internal controls"\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/suretyone.com\/blog\/fidelity-bond-the-importance-of-internal-controls\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fidelity Bonds and the Importance of Internal Controls\" \/>\n<meta property=\"og:description\" content=\"The most important fidelity bond underwriting consideration is the presence and strength of "internal controls"\" \/>\n<meta property=\"og:url\" content=\"https:\/\/suretyone.com\/blog\/fidelity-bond-the-importance-of-internal-controls\/\" \/>\n<meta property=\"og:site_name\" content=\"Surety One, Inc.\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Surety1\/\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/Surety1\" \/>\n<meta property=\"article:published_time\" content=\"2013-06-28T03:16:05+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-12-30T07:13:10+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/suretyone.com\/blog\/wp-content\/uploads\/credit-union-fidelity-bond.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"719\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@SuretyOne\" \/>\n<meta name=\"twitter:site\" content=\"@SuretyOne\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"C. 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