Fidelity Bonds

Fidelity bonds are insurance policies that protect a business against losses caused by employees who intentionally steal or commit fraud. Essentially, they safeguard the company’s financial assets from dishonest acts by staff members. If an employee deceives the company to illegally take money or property, the bond provides financial compensation to help cover the loss. Businesses use fidelity bonds to minimize risk and maintain trust, especially when hiring staff handling money or valuable assets. They are different from regular insurance and are specifically designed to protect against internal employee dishonesty.