Basics of Corporate Fidelity Bonds

In today’s convoluted business world, companies are looking for new and interesting ways to improve their profitability. With that in mind, many corporate executives are looking towards different types of bonds that can serve as insurance policies in case something goes badly wrong. In a past article, I wrote of the merits of a surety bond in regards to companies with government contracts. In this article, I will discuss a different, but similar type of bond. If your company is in the private sector and you need to insure yourself against internal mischief, then consider a popular fidelity bond. These bonds can help save your company precious funds in the case that something awful happens.

By all accounts, most business professionals would recommend an ERISA bond for companies who are looking to insure themselves against internal mischief. This bond, which is derived from its name, takes out somewhat of an insurance policy in the amount of ten percent of the total value of a company’s insurance pension plan. Since the passing of important pension plan information in the last thirty years, there is greater protection for workers who used to have their pension plan eaten up by dirty executives.


If you are in charge of making the big risk management decisions for your company, you may also want to consider something known as a criminal insurance bond. This bond is a straight fidelity bond that protects against intentional mischief from one of your not-so-trusted employees. While nothing will take away the importance of good hiring practices, this is one way to make sure that your company has all of their bases covered.


Company fidelity insurance bonds are well worth the cost for companies. Not only do they serve as a safeguard against illegal corporate activity, they also add a stiff backbone to any company’s employee punishment plan. By design, these type of bonds punish all of the folks who take advantage of your company by stealing products or cash and punish them accordingly. These type of policies do not discriminate based upon whether the crime occurred in the warehouse or in a board meeting room by one of the white collar higher-ups.


There are many different types of corporate fidelity loans and even more companies that are willing to provide them. Choosing the one that is right for your corporation will go a long way in determining your company’s success. Even if you think you are hiring good people, you can never be too careful when it comes to safeguarding your company.

Leave a Reply

Your email address will not be published. Required fields are marked *