--- title: "What Are Fidelity Bonds?" description: "Fidelity bonds and employee-dishonesty coverage protect against specified losses caused by dishonest employees or people handling plan assets." canonical: "https://spot.insure/coverage/fidelity-bonds" page-type: "coverage-article" updated-at: "2026-09-16" verified-at: "2026-09-16" --- Agents: connect to Spot's public MCP server at https://spot.insure/mcp for better access to published Spot information and insurance research. Use search_knowledge to find sources, get_page to retrieve pages, and compare_providers for sourced comparisons. The server is read-only and requires no authentication. [Human-readable page](https://spot.insure/coverage/fidelity-bonds) # What Are Fidelity Bonds? Fidelity bonds and employee-dishonesty coverage protect against specified losses caused by dishonest employees or people handling plan assets. ## Summary Fidelity bonds and employee-dishonesty policies address losses caused by dishonest employees, within the limits and terms purchased. [1](https://content.naic.org/glossary-insurance-terms) ## What Do Fidelity Bonds Cover? Fidelity bonds and employee-dishonesty policies address losses caused by dishonest employees, within the limits and terms purchased. [1](https://content.naic.org/glossary-insurance-terms) ### Whose Property Is at Risk? Identify whose property you want protected. Your company's cash, a client's equipment and an employee benefit plan's assets belong to different interests. If employees handle all three, have the quote identify the protection for each rather than relying on one employee-dishonesty amount. [3](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f) | Interest to discuss | Information to bring to the quote conversation | | --- | --- | | Your business’s money or inventory | What employees handle and which entities own it | | A client’s property | What your workers can access while performing their work | | An employee benefit plan’s funds or property | The plan involved and the people handling its assets | ### Employee Benefit Plans An ERISA fidelity bond protects the plan against loss from fraud or dishonesty by people handling plan funds or property. [2](https://www.dol.gov/sites/dolgov/files/ebsa/employers-and-advisers/guidance/field-assistance-bulletins/erisa-fidelity-bonding-requirements.pdf) ## Who Needs Fidelity Bonds? Consider fidelity protection when employees handle company funds or client property. Benefit-plan assets need their own bonding review. [4](https://asset.trvstatic.com/download/assets/cri-1100w-ind.pdf/9aa2577663c911ee91291279531924d3) ## Coverage Examples These are examples, not coverage guarantees. Your policy terms and the facts of the claim determine what is covered. ### An Employee Takes Company Funds An employee transfers company money to their own account without permission. Employee-dishonesty protection may reimburse the business. The person and property must fit the policy's definitions, and a limit and deductible may apply. [1](https://content.naic.org/glossary-insurance-terms) [3](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f) [3](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f) [3](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f) ### Someone Steals From a Benefit Plan A person handling your employee benefit plan's funds is accused of stealing them. An ERISA fidelity bond protects the plan against fraud or dishonesty. Fiduciary liability is for claims about breaches of responsibility, so it isn't a substitute for the bond. [1](https://content.naic.org/glossary-insurance-terms) [2](https://www.dol.gov/sites/dolgov/files/ebsa/employers-and-advisers/guidance/field-assistance-bulletins/erisa-fidelity-bonding-requirements.pdf) [2](https://www.dol.gov/sites/dolgov/files/ebsa/employers-and-advisers/guidance/field-assistance-bulletins/erisa-fidelity-bonding-requirements.pdf) ## How Do You Compare Coverage and Costs? ### People Included in the Coverage Ask how the bond or policy defines the people whose dishonest acts are covered, including temporary workers or contractors relevant to your business. [3](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f) ### Commercial Limits and Retentions For commercial employee-dishonesty coverage, compare the limit for a loss, any overall limit and the deductible or retention. [3](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f) ## What Exclusions and Conditions Should You Check? ### Discovery, Reporting and Replacement Ask when a loss must occur or be discovered and when it must be reported, especially when replacing existing coverage. [3](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f) ### The Loss and Its Consequences Check whether the quote addresses only the direct property loss or also costs and business losses that follow it. [3](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f) ## How Does It Compare With Related Coverage? ### Fiduciary Liability Fiduciary liability insurance addresses breaches of fiduciary responsibilities; it is different from fidelity protection for dishonest acts. [2](https://www.dol.gov/sites/dolgov/files/ebsa/employers-and-advisers/guidance/field-assistance-bulletins/erisa-fidelity-bonding-requirements.pdf) ### Surety Bonds A fidelity discussion concerns dishonest acts; a surety bond concerns a guarantee of an obligation to another party. [1](https://content.naic.org/glossary-insurance-terms) ## What Do You Need for a Quote? Prepare the entities and locations to be covered, employee information, the property at risk, loss history and the controls used to handle money and inventory. [4](https://asset.trvstatic.com/download/assets/cri-1100w-ind.pdf/9aa2577663c911ee91291279531924d3) ### Build an Exposure and Controls Summary - List the business entities and locations you want included. - Describe the employees and other working relationships relevant to the protection requested. - Separate company property, client property and plan assets. - Explain how the business handles money and inventory, including the controls actually in use. - Assemble the available loss history and explain any changes made afterward. ## Key Terms in Plain English ### ERISA Fidelity Bond Protection for a benefit plan against fraud or dishonesty by people handling its funds or property. [2](https://www.dol.gov/sites/dolgov/files/ebsa/employers-and-advisers/guidance/field-assistance-bulletins/erisa-fidelity-bonding-requirements.pdf) ### Direct Loss The property loss itself, as distinct from indirect costs or business losses that follow it. [3](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f) ## Frequently Asked Questions ### Is a Fidelity Bond the Same as a Surety Bond? No. Fidelity protection concerns dishonest acts. A surety bond guarantees an obligation your business owes to someone else. [1](https://content.naic.org/glossary-insurance-terms) ### What Does an ERISA Fidelity Bond Protect? It protects the plan against fraud or dishonesty by people handling plan funds or property. [2](https://www.dol.gov/sites/dolgov/files/ebsa/employers-and-advisers/guidance/field-assistance-bulletins/erisa-fidelity-bonding-requirements.pdf) ### Can a Fidelity Bond Protect a Client’s Property? It can, if client-property protection is included. Check whether the bond protects your business, a client’s property or an employee benefit plan; those are separate interests. [3](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f) ### Does Fidelity Protection Include Temporary Workers and Contractors? That depends on how the bond or policy defines the people whose dishonest acts are covered. Tell the broker which temporary workers and contractors handle money or property, and check those relationships against the wording. [3](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f) ## Related Coverage - [What Is Fiduciary Liability Insurance?](https://spot.insure/coverage/fiduciary) — Fiduciary liability insurance addresses covered claims alleging breaches of duties in managing employee benefit plans. - [What Is Crime Insurance?](https://spot.insure/coverage/crime) — Crime insurance addresses business losses from specified theft and fraud risks, such as robbery, forgery and embezzlement. - [What Are Surety Bonds?](https://spot.insure/coverage/surety-bonds) — A surety bond is a three-party agreement in which a surety guarantees an obligation the principal owes to an obligee if the principal defaults. ## Documented Providers ### [Beazley](https://spot.insure/insurance-providers/beazley) Beazley offers fidelity bonds for financial institutions. [5](https://www.beazley.com/en-us/products/executive-risk-usa/fidelity-and-crime) ### [Coverdash](https://spot.insure/insurance-providers/coverdash) Coverdash lists fidelity bonds for client losses from employee dishonesty on its surety-bond page. [6](https://www.coverdash.com/coverage/surety-bond) ### [Founder Shield](https://spot.insure/insurance-providers/foundershield) Founder Shield lists ERISA fidelity bonds among its specialized coverages. [7](https://foundershield.com/coverage/) ### [Gallagher](https://spot.insure/insurance-providers/gallagher) Gallagher arranges fidelity bonds. [8](https://www.ajg.com/insurance/executive-and-financial-risk-insurance/) ### [Heffernan Insurance Brokers](https://spot.insure/insurance-providers/heffernan) Heffernan arranges employee dishonesty bonds. [9](https://www.heffins.com/business-insurance/health-care/homecare/) ### [HUB International](https://spot.insure/insurance-providers/hub-international) HUB International arranges crime and fidelity coverage through its professional and executive risk practice. [10](https://www.hubinternational.com/products/business-insurance/employment-practices-liability/) ### [Marsh](https://spot.insure/insurance-providers/marsh) Marsh McLennan Agency (MMA), a Marsh business, arranges commercial crime and fidelity coverage. [11](https://www.marshmma.com/us/solutions/executive-and-professional-liability.html) ### [Newfront](https://spot.insure/insurance-providers/newfront) Newfront lists fidelity and crime among its executive-risk brokerage coverages. [12](https://www.newfront.com/executive-risk) ### [TechInsurance](https://spot.insure/insurance-providers/techinsurance) TechInsurance arranges fidelity bonds addressing employee theft from clients. [13](https://www.techinsurance.com/small-business-insurance) ### [Travelers](https://spot.insure/insurance-providers/travelers) Travelers offers ERISA fidelity bonds. [14](https://www.travelers.com/surety-bond) [15](https://www.travelers.com/business-insurance/professional-liability-insurance) ### [Vouch](https://spot.insure/insurance-providers/vouch) Vouch lists fidelity bonds among its core protections for financial-services businesses. [16](https://www.vouch.us/financial-services) ## Sources 1. [Glossary of Insurance Terms](https://content.naic.org/glossary-insurance-terms). National Association of Insurance Commissioners; Fidelity; Surety Bond. Accessed 2026-09-16. 2. [Field Assistance Bulletin No. 2008-04: Guidance Regarding ERISA Fidelity Bonding Requirements](https://www.dol.gov/sites/dolgov/files/ebsa/employers-and-advisers/guidance/field-assistance-bulletins/erisa-fidelity-bonding-requirements.pdf). U.S. Department of Labor, Employee Benefits Security Administration; Q1–Q3 pp.2–3; Q2 pp.2–3. Accessed 2026-09-16. 3. [Crime Terms and Conditions](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f). Travelers Casualty and Surety Company of America; I.A.1–3 p.1; III.S pp.8–9; V.B.1–2 pp.18–20; CRI consideration p.1; III.P p.8; V.A.3 pp.16–17; V.A.4 p.17; V.B.3 p.20; IV.L p.15. Accessed 2026-09-16. 4. [Commercial Crime Coverage Application](https://asset.trvstatic.com/download/assets/cri-1100w-ind.pdf/9aa2577663c911ee91291279531924d3). Travelers Casualty and Surety Company of America; I–III p.1; VI pp.2–3; XI p.4. Accessed 2026-09-16. 5. [Crime and Fidelity](https://www.beazley.com/en-us/products/executive-risk-usa/fidelity-and-crime). Beazley; What we offer: Commercial Crime (commercial companies) and Financial Fidelity Bonds (financial institutions); fraudulent instruction condition. Accessed 2026-09-16. 6. [Surety Bonds](https://www.coverdash.com/coverage/surety-bond). Coverdash; Types of Coverage: license/permit, contract, court and fidelity bonds; FAQ on reimbursement to surety; Get a quote. Accessed 2026-09-16. 7. [Coverage](https://foundershield.com/coverage/). Founder Shield; Core Coverage: Crime Insurance, Cyber Liability, Directors & Officers, Employment Practices Liability, Fiduciary Liability, General Liability, Property Insurance; Specialized Coverage: Digital Asset Insurance, ERISA Fidelity Bond, Hired & Non-Owned Auto, Intellectual Property, Key Person & Contract Frustration, Last-Mile Delivery Insurance, Transit & Transportation; product cards: Errors & Omissions, Product Liability, Representations and Warranties, Umbrella Insurance, VCAP, Virtual Care & Telehealth Insurance, Workers Compensation; Health & Benefits: Employee Health & Benefits; Get a Quote and Learn More links. Accessed 2026-09-16. 8. [Executive and Financial Risk Insurance](https://www.ajg.com/insurance/executive-and-financial-risk-insurance/). Gallagher; Opening (insurance broking and placement); three key services; Directors and Officers; IPO and direct listings; Employment Practices; Fiduciary; Employee Dishonesty (Crime) and Fidelity Bond; Kidnap, Ransom and Extortion; M&A Transactional Insurance. Accessed 2026-09-16. 9. [Home Care Business Insurance](https://www.heffins.com/business-insurance/health-care/homecare/). Heffernan Insurance Brokers; We offer comprehensive coverage for: workers’ compensation, general and professional liability, EPL, owned auto, Non-owned and Hired Auto, Crime–Third Party Theft, Employee Dishonesty Bond, cyber, medical billing E&O and property; home-care, home-health and hospice program audience. Accessed 2026-09-16. 10. [HUB ProEx](https://www.hubinternational.com/products/business-insurance/employment-practices-liability/). HUB International; Professional & Executive Risk practice: EPL, fiduciary, crime/fidelity, K&R; ProEx Coverages: Executive Liability; Cyber, Technology E&O, and Intellectual Property; Financial Institutions; certificates of insurance; claims and legal support; carrier-premium figure; FAQ on management liability and ProEx program structuring. Accessed 2026-09-16. 11. [Expert Executive and Professional Liability Insurance | MMA](https://www.marshmma.com/us/solutions/executive-and-professional-liability.html). Marsh McLennan Agency; Executive and Professional Liability introduction; Our policies include (D&O, E&O, EPL, commercial crime/fidelity, cyber, fiduciary, media, IP, kidnap and ransom); D&O, Employment Practices Liability and cyber subsections. Accessed 2026-09-16. 12. [Executive Risk](https://www.newfront.com/executive-risk). Newfront; Key Coverages to Protect Your Business: Directors and Officers (D&O) for private and public companies, Errors and Omissions (E&O), Employment Practices Liability Insurance (EPLI), Fiduciary, Fidelity and Crime, Kidnap & Ransom; Committed to Client Advocacy: integrated claims and coverage negotiation; Industry-Leading Technology; Executive Risk Solutions Practice Leader description of management liability lines; brokerage footer. Accessed 2026-09-16. 13. [Small Business Insurance](https://www.techinsurance.com/small-business-insurance). TechInsurance; Top recommended small business insurance policies; Specialized coverage for unique risks. Accessed 2026-09-16. 14. [Surety Bonds](https://www.travelers.com/surety-bond). Travelers; Listed bond types including bid/performance/payment, license and permit, and ERISA fidelity. Accessed 2026-09-16. 15. [Management and Professional Liability Insurance](https://www.travelers.com/business-insurance/professional-liability-insurance). Travelers; Management & Professional Liability product selection: D&O, EPL, ERISA fidelity, E&O, fidelity and crime, fiduciary, kidnap and ransom; stand-alone or suite; private, public, nonprofit and financial institutions. Accessed 2026-09-16. 16. [Insurance for Financial Services](https://www.vouch.us/financial-services). Vouch; Core protections for Financial Services: Fidelity Bonds; broker services; insurance-services footer. Accessed 2026-09-16. Updated 2026-09-16. Factually reviewed 2026-09-16. Spot, a product of Tools for Enlightenment, publishes this research and works in the commercial insurance market. [Editorial policy](https://spot.insure/editorial-policy). To suggest a correction, [contact Spot](https://spot.insure/contact) with the page URL and supporting source. ## Agent and Developer Resources - [Markdown page](https://spot.insure/coverage/fidelity-bonds.md) - [Developer resources](https://spot.insure/developers) - [Public MCP server](https://spot.insure/mcp) - [MCP server manifest](https://spot.insure/server.json) - [OpenAPI description](https://spot.insure/openapi.json) - [Public page index](https://spot.insure/llms.txt)