{"id":253,"date":"2013-01-31T04:29:18","date_gmt":"2013-01-31T04:29:18","guid":{"rendered":"http:\/\/suretyone.com\/blog\/?p=253"},"modified":"2021-04-12T15:38:17","modified_gmt":"2021-04-12T15:38:17","slug":"third-party-fidelity-bond-coverage","status":"publish","type":"post","link":"https:\/\/suretyone.com\/blog\/third-party-fidelity-bond-coverage\/","title":{"rendered":"Third Party Fidelity Bond Coverage"},"content":{"rendered":"

It is well established law in most states that a standard\u00a0fidelity bond<\/a> does not cover an insured\u2019s liability to a third party, even though an employee\u2019s dishonesty is what sets into motion a chain of events culminating in that liability.\u00a0 An insured may not use a first party fidelity bond to deflect third party liability to its insurer. \u00a0The unambiguous language in a commercial crime policy<\/a> (fidelity bond) defining a “direct loss” is the insurer’s safeguard prohibiting third party protection. \u00a0So what do you do if you need third party fidelity coverage? \u00a0Fortunately a\u00a0third party fidelity bond<\/strong>\u00a0as a stand-alone policy is\u00a0available.<\/p>\n

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<\/a>, which are a fidelity bond product.<\/p>\n