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Fidelity Bond
What is Fidelity Bond ?
A fidelity bond is a form of insurance protection that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals. It usually insures a business for losses caused by the dishonest acts of its employees.
What is an ERISA Fidelity Bond?
An ERISA fidelity bond is a type of insurance that protects the plan against losses caused by acts of fraud or dishonesty. Fraud or dishonesty includes, but is not limited to, larceny, theft, embezzlement, forgery, misappropriation, wrongful abstraction, wrongful conversion, willful misapplication, and other acts. Deductibles or other similar features are prohibited for coverage of losses within the maximum amount for which the person causing the loss is required to be bonded. In addition, it is important to make sure that the plan is named (or otherwise specifically identified) as an insured party on the bond so that the plan can recover losses covered by the bond.
What is a fidelity bond for a 401k?
The fidelity bond required under section 412 of ERISA specifically insures a plan against losses due to fraud or dishonesty (e.g., theft) on the part of persons (including, but not limited to, plan fiduciaries) who handle plan funds or other property.
How much does it cost to get a fidelity bond?
How Much Does a Fidelity Bond Cost? The price of fidelity bond insurance depends on the type of business you run, how many employees you have, and the type of customers you serve. For example, a small consulting firm may purchase $1 million in blanket coverage and have an annual premium of less than $2,000.
What is fidelity bond coverage for condos?
Fidelity bonding: Sometimes called "crime coverage," "employee dishonesty coverage," or "fidelity bonding," this type of insurance is basically designed to protect against theft or embezzlement by employees, directors, management personnel, or others who might have access to association funds.
What is a fidelity crime Bond?
A fidelity bond is a form of insurance protection that covers policyholders for losses that they incur as a result of fraudulent acts by specified individuals. It usually insures a business for losses caused by the dishonest acts of its employees.
Is a fidelity bond the same as employee dishonesty?
Yes, in most cases they are considered the same type of coverage. Employee dishonesty insurance is also sometimes called crime coverage, employee dishonesty bond, fidelity bond and crime fidelity insurance.
Who is the principal in a fidelity bond?
It is used to cover the theft of money, securities and other fungible property by employees. The Principal in the Fidelity Bond is the employee. The Obligee in the Fidelity Bond is the Employer. Of course the Surety is the insurance company.