Fidelity & Crime
Employee Dishonesty Bond
An employee dishonesty bond is a fidelity bond that reimburses a business when its own employees steal money or property from it.
- Required by
- Usually the business itself, a lender, or a contract; not typically required by law
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond protects the employer, not a government agency or customer. It pays for losses from theft, embezzlement, or forgery by covered employees, up to the bond amount. Coverage terms such as conviction clauses and deductibles depend on the form.
Who needs it
- Businesses whose employees handle cash or inventory
- Professional offices such as accountants, attorneys, and medical practices
- Nonprofits with staff handling donations
What the underwriter looks at
- Number of employees covered
- Amount of money employees handle
- Internal controls and prior losses
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How is this different from a surety bond?
In a surety bond the principal must repay the surety for claims. An employee dishonesty bond works more like insurance: it protects the business that buys it against losses from its employees.
Is this the same as commercial crime insurance?
They cover similar ground. Crime policies often add coverage beyond employee theft, such as forgery or computer fraud by outsiders.