Business Services Bonds
A business services bond is an inexpensive way to offer superlative protection to your clients and to advertise as a "bonded enterprise". This type of commercial crime coverage is often referred to as a "third party fidelity bond" or "dishonesty bond" specifically designed to cover those businesses with an "on premises" peril. Fidelity bonds may be written on a blanket basis which will cover all clients of a principal or client/contract-specific basis which is convenient if a customer is a financial institution or high net worth individual that requires dishonesty coverage as part of doing business with him or her. A business services bond covers the dishonest acts of employees that provide services inside the locales of clients. Employee theft of client property is unfortunately common. Bonding is an inexpensive solution.
National fidelity bond leader, Surety One, Inc., specializes in underwriting business services bonds and fidelity risks for ALL types of business. No background checks are required and we decline no applicants. Call (800) 373-2804, email Underwriting@SuretyOne.com or click here to discuss your business services bond need. We offer commercial crime coverage, cyber risk and hi-cap third party fidelity bonds nationally, Puerto Rico and the U.S. Virgin Islands.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.
Business Services Bond Special Clauses
- A policy form written on a loss discovered basis insures those losses that are "discovered" during the active term of the fidelity bond.
- Fidelity bonds written on a loss sustained basis offer insurance for only those losses that occur AND are discovered during the term of the policy. Extended discovery periods can generally be purchased.
- A conviction clause is a common provision in small business services bonds. The are a few jurisdictions that have prohibited the insertion of conviction requirements however they are very common and should be considered when purchasing a fidelity bond. The inclusion of this clause acts to strictly bar payment of a dishonesty claim if the insured does not obtain a criminal conviction of the offending employee. Conviction clauses are often replaced by indictment clauses where allowed. Similar to conviction clauses, this provision deters frivolous and fraudulent claims against the surety by obligating the insured to pursue the offenders.