A fidelity bond is a bond which indemnifies the insured for loss caused by the dishonest and fraudulent acts of its covered employees. In addition, a fidelity bond typically covers the insured against the following:
- Forgery or Alteration;
- Loss inside the premises caused by theft, disappearance and destruction, and robbery and safe burglary;
- Loss outside the premises caused by the robbery of a messenger.
These coverages sometimes are referred to as Crime Coverage.
Annually writers of Fidelity and Crime Coverage incur almost $500 million in losses by protecting organizations from risks that are present each day they are open for business: employee dishonesty, robbery and burglary.
Fidelity bonds are divided into two primary categories: financial institutions (for example, banks, stock brokers, insurance companies and finance companies) and mercantile and governmental entities (non-financial institutions). The coverage needs of these categories differ and SFAA has developed standard forms that meet the particular coverage needs of each group.
Information regarding the particular SFAA forms may be accessed by clicking the relevant links.
Financial Institution Bonds - Description of Coverage