A fidelity bond, more commonly referred to as a commercial crime policy is written to protect an organization from the impact of dishonest acts of the organization's employees. There are other coverage parts now available but the primary insurance part is employee theft. Surety One offers broad forms for both domestic and international business operations, generally following the S.F.A.A. formats. A typical fidelity bond will offer:
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!
Pursuant to ERISA section 412 and 29 C.F.R. §2550.412-1 and 29 C.F.R. Part 2580, every regulated plan must be covered by an ERISA bond. This fidelity bond must be equal to no less than ten percent (10%) of the total asset value in the plan if those assets are "qualified", and one hundred percent (100%) if the plan assets are "non-qualified". The maximum ERISA fidelity bond amount required under Federal Code is $500,000, however if the plan is an employee stock ownership plan (ESOP) then the maximum is $1mn.
A standard ERISA bond does NOT provide coverage for registered investment advisers that are not also employees of the plan sponsor. We offer a specialty fidelity bond product to cover this exposure.
The following are the applications for our more popular business classes. Our Canadian producers will need to log in to access fidelity bond applications for specific provinces.
We offer denominations (coverages) from $5,000 to $2,000,000 to cover small enterprises such as janitorial services, pet sitters, housekeepers, valets, tow truck operations, home health care providers, security guards and the like.
Application in English
Solicitud en Español
Applications for Limits in Excess of $250,000
Fidelity Bond for Janitorial Services
Fidelity Bond for Pest Control Services
Fidelity Bond for Home Care Services
Fidelity Bond for Auctioneers
Fidelity Bond for Moving Companies
Fidelity Bond for Security Guard Companies
Fidelity Bond for Home Inspectors
Fidelity Bond for Carpenters & Construction Trades
Fidelity Bond for HVAC & Electrical Contractors
Fidelity Bond for Handyman Services
Fidelity Bond for Pet Sitters
Fidelity Bond for Real Estate Brokers (E&O Insurance)
Fidelity Bond for Carpet Cleaning Services
Fidelity Bond for Temporary Employment Agencies
Fidelity Bond for Public Adjusters
Commercial crime policies or dishonesty bonds may be manuscripted with two very distinct trigger mechanisms. A policy form written on a loss discovered basis insures those losses that are "discovered" during the active term of the fidelity bond. Obviously this form is generally preferred as a loss may occur months or years prior to discovery of the loss. Special care should be taken when crime coverage is replaced to ensure that fair retroactive language is included.
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. Most carriers do offer an extended discovery period or allow an insured to purchase one. Extended discovery clauses built in to standard commercial crime forms vary, generally from thirty days to one year.
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.
Some limited cyber risk insurance coverage is now part of many fidelity and commercial crime policies. Computer crime endorsements that cover computer fraud, data restoration expenses and funds transfer fraud are common. The active clause generally looks like the following, . . . "The insurer will pay the Insured for its direct loss of, or direct loss from damage to Money, Securities and Other Property directly caused by Computer Fraud."