Fidelity & Crime
Individual Fidelity Bond
A fidelity bond that covers theft or dishonesty by one named person, rather than by all employees.
- Required by
- Employers, lenders, contracts, or regulations that name the person to be bonded
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond pays the employer or obligee for money or property lost through the dishonest acts of the one person named on the bond, up to the stated amount. Federal ERISA rules define it as a bond that covers a named individual in a stated penalty. A claim follows a proven loss caused by that person.
Who needs it
- Businesses bonding a single bookkeeper, treasurer, or officer
- Organizations required to bond a specific person who handles funds
- Nonprofits and associations with one person handling money
What the underwriter looks at
- The bonded person's background and credit
- Amount of money the person handles
- Internal controls such as dual signatures and audits
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 blanket bond?
An individual bond covers one named person. A blanket bond covers all officers and employees automatically, with no list.
What if the person leaves?
The bond does not move to the replacement. You need a new bond or a rider naming the new person.
Does it cover honest mistakes?
No. A fidelity bond covers dishonest acts such as theft or embezzlement, not errors.