What is the difference between a fidelity bond and crime insurance? The short answer is that a fidelity bond is the same thing as crime insurance. There are different types of crime insurance coverage though, depending on the industry you work in and what you’re looking for. When looking at fidelity bonds or crime insurance, there are a few things to keep in mind as you and your insurance agent decide which crime insurance coverage is best for you.
What is a fidelity bond?
A fidelity bond is a type of insurance that protects you from fraudulent acts of others. Usually business owners will get a fidelity bond to protect themselves from an employee’s misdeeds. The bonds can cover employee dishonesty, credit card forgery, computer fraud, theft, and destruction of property. This is why fidelity bonds are often called crime insurance—they protect the policyholder from the crime of another person.
Bonds vs. Insurance
Bonds are essentially a form of insurance. There can be major differences between bonds and insurance policies, and you should talk to your insurance agent about those differences in your specific state and situation. Fidelity bonds are different than contract bonds which are different than court bonds. There are many things to take into account, so your insurance agent will help you understand each of them and make sure you have the coverage you need.
Types of Crime Insurance
There are many different types of crime insurance coverage. Particularly for commercial crime insurance and business crime insurance, there are multiple types of coverage that business owners may need. Employee dishonesty, burglary, computer fraud, forgery, and destruction of money are just a few of the types of insurance that many small, medium, and large businesses may need. Again, your insurance agent will help you decide which type of fidelity bonds and crime insurance you need.
Financial Institutions and Businesses
There are two main types of fidelity bond policies for businesses: bonds for financial institutions, and bonds for other commercial businesses. Companies that handle client’s money or work as a financial institution need special coverages that offer additional protection.
Companies that don’t work with money but do work with contracted employees may also need special coverage. There are intricacies to financial institution bonds and commercial crime policies that your insurance agent can help you with.
If you’re int the Las Vegas, Henderson, or Summerlin area and you’re looking for an insurance agent who can help you with all your insurance needs, contact GLB Insurance. We can simplify your options and help you find the best insurance for your company.