Generally a standard fidelity bond (first party coverage) will 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. There is exclusionary language in many coverage form that leave a large exposure to "on client's premises" risks. Bottom line, 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 that very third party protection. So what do you do if you need third party fidelity coverage? Fortunately a third party form is available stand-alone.
A third party fidelity bond is superlative and inexpensive protection for all types of businesses. 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.
Surety One, Inc. 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 call (800) 373-2804, email us at Underwriting@SuretyOne.com or click here to live chat about a third party fidelity bond application or for any fidelity coverage need.
Third party fidelity bonds that are issued in small coverage amounts (or "bond penalties") are often broad and a good fit for companies that provide a variety of "on site" services. Every business should carry the protection of fidelity bond coverage however there are some particular occupations that benefit greatly from both the insurance as well as the ability to advertise as a “bonded enterprise”. Read more about these classes of business here.
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
Fidelity Bond for Carpet Cleaning Services
Fidelity Bond for Temporary Employment Agencies
Fidelity Bond for Public Adjusters
Surety bond application review and quoting are free of charge. There is no obligation to purchase.