A fidelity bond is a type of financial instrument that guarantees the performance of a fiduciary, who may be in a position of public or private trust relative to money.
Another term for fidelity bond is crime coverage, as it insures against money being taken from a company both within and from outside the organization.
Fidelity or crime coverage includes:
If you have a 401k plan you probably also have ERISA coverage, a subset of fidelity and employee dishonesty protection.
One way to take advantage of underwriting expertise is to use the carrier's questions on a Crime application as a starting point for putting together your financial protocol.
Important update: Cyber crime has surpassed the traditional check writing scheme by a wide margin over the past few years. "Social engineering" refers to today's version of an old-fashioned grift. Criminal digital theft is the fastest growing criminal enterprise in the world, so having dual authorization for funds transfer, and being highly aware - at all levels of the organization - of efforts to part a business from its money is more important today that ever. A robust employee training program in coordination with your IT partners should be a critical part of any company's strategy.
For more on Cyber theft (and data breach liability), including strategies for protecting your organization, download our free e-book on Cyber Liability.
Talking to risk professionals at Gordon Atlantic Insurance should help you to quantify what your vulnerabilities may be, and whether insurance - or fidelity bonds - may play a part in reducing the cost of that risk to your business. Call us toll free at 1-800-649-3252 to discuss your own exposure. Prefer to type versus talk? Ask a question by clicking below!