Fidelity bonds protect businesses and their clients from losses caused by dishonest acts of employees, including theft, fraud, and forgery. Whether you run a cleaning company, staffing agency, or manage employee benefit plans, fidelity bonds provide essential coverage that builds trust and safeguards your bottom line.
Janitorial bonds are designed specifically for cleaning companies that send employees to work at client locations such as offices, commercial buildings, and residential properties. These bonds protect clients from financial loss in the event that a cleaning employee commits theft while on the job.
Many commercial clients require janitorial bonds before they will hire a cleaning service, making this coverage essential for growing your business. Having a janitorial bond in place demonstrates professionalism and gives prospective clients confidence that their property and valuables are protected.
Common bond amounts range from $5,000 to $25,000, though higher limits are available. Premiums are affordable and based on the number of employees and the coverage amount selected. Most janitorial bonds can be issued quickly, often within one to two business days.
Business service bonds function similarly to janitorial bonds but cover a broader range of service companies that send employees to work at client premises. This includes IT service providers, maintenance and repair companies, staffing agencies, home health care providers, property management firms, and any other business whose employees have access to client property.
When your employees enter a client's home or office, the client needs assurance that their belongings are safe. A business service bond provides that assurance by guaranteeing financial restitution if an employee commits theft or other dishonest acts while performing their duties.
Bond amounts are flexible and can be tailored to your business needs. Premiums are calculated based on the number of employees covered and the total bond amount. Obtaining a business service bond is straightforward, and most applications are approved within one to two business days.
Employee dishonesty bonds protect the employer from financial loss due to dishonest or fraudulent acts committed by employees. Unlike janitorial and business service bonds, which protect the employer's clients, employee dishonesty bonds protect the business itself from internal theft, embezzlement, forgery, and other forms of employee fraud.
Coverage can be structured to protect against losses caused by a specific individual (individual bond) or to cover all employees under a single policy (blanket bond). Blanket coverage is the more common option, as it provides protection regardless of which employee causes the loss and does not require identifying specific individuals in advance.
Employee dishonesty bonds are available in a wide range of coverage amounts, from $10,000 to $500,000 or more. Businesses that handle cash, manage client accounts, or have employees with access to valuable inventory should strongly consider this type of protection.
ERISA bonds are required by federal law under the Employee Retirement Income Security Act (ERISA) for anyone who handles funds or property of an employee benefit plan. This includes plan administrators, trustees, and any other fiduciaries with access to plan assets such as 401(k) plans, pension plans, health and welfare plans, and profit-sharing plans.
The bond amount must equal at least 10% of the plan assets handled, with a minimum bond amount of $1,000 and a maximum of $500,000. For plans that hold employer securities, the maximum increases to $1,000,000. Failure to maintain the required ERISA bond can result in personal liability for plan fiduciaries and penalties from the Department of Labor.
ERISA bonds are typically very affordable, with premiums starting at just a few hundred dollars per year depending on the required coverage amount. They must be obtained from a surety company listed on the U.S. Department of the Treasury's approved list.
For businesses that need higher limits of employee dishonesty coverage, crime insurance policies provide broader protection than traditional fidelity bonds. Crime insurance is available with coverage limits of $500,000, $1,000,000, or more, making it suitable for larger organizations or those with significant exposure to employee fraud.
Crime insurance policies typically cover a wider range of perils than a standard fidelity bond, including employee theft, forgery or alteration, computer fraud, funds transfer fraud, and money and securities coverage. Some policies also include coverage for social engineering fraud, which protects against losses from phishing scams and other deceptive schemes that trick employees into transferring funds.
If your business handles large amounts of cash, manages client funds, or operates in an industry with elevated fraud risk, crime insurance provides comprehensive protection that goes beyond what a standard fidelity bond can offer. Our team can help you determine the right coverage level for your organization.