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Fidelity Bond Insurance

Get business insurance with optimized coverage to meet your exact needs

Or call (646) 844-9933 for advice and customised recommendations.

What is Fidelity Bond Insurance?

Fidelity Bond Insurance protects your small business from criminal employee-activities while also protecting customers who may be on the receiving end.

Fidelity Bond Insurance is commonly required from certain businesses that open up shop in some states.

Example: If one of your employees or contractors embezzles client money, Fidelity Bond Insurance will reimburse your for the embezzled sum, as well as any related costs.

What Do Fidelity Bonds Cover?

Frequently Asked Questions

Who Is Covered by Fidelity Bond Insurance?

Your Business


Your business will be protected if your employees commit fraudulent acts such as a theft of money, securities, and any other property. Even thought it is a bond, it acts more like a liability insurance policy for your business.

Do I Need a Fidelity Bond?

Fidelity Bond Insurance may come in handy if:


  • Your company is required to purchase this insurance to get a business license
  • Your business has employees who handle financial transactions
  • Your business collects personal information from customers
  • You operate a business within the financial sector

What Are the Limits of a Fidelity Bond?

The Bond will only cover claims up to the amount written into the policy. This means a Fidelity Bond of $500,000 will only cover that amount. If you must pay an amount beyond this, you will be liable for the amount not covered by the bond.


Some bonds are also limited to claims made during the time you hold the policy. Others may allow for claims that relate to theft or fraud that happened at an earlier date.

How Much Does a Fidelity Bond Cost?

Fidelity Bonds can be purchased in various amounts, depending on your need. Coverage costs are typically a small percentage of (anywhere from .5% to 2%) of your total coverage amount. For example, a $500,000 bond at .5% would cost $2,500 to purchase.

Do profit sharing plans need a Fidelity Bond?

While there are some exceptions to the rule, any qualified plan will be required to have a Fidelity bond. This includes 401(k), 402(b), ESOP’s, and profit-sharing plan. If you are not sure, consult with a CoverWallet advisor and they can help you determine if you need one.

Who is the obligee on a Fidelity Bond?

The obligee on the Fidelity bond is your business as it is protecting your business from fraudulent acts by specified individuals.

What's Not Covered by a Fidelity Bond?

Errors and omissions Mistakes or misrepresentation made by business professionals are not included in Fidelity Bonds.


Bodily injury Does not include protecting businesses from financial losses due to third-party claims for bodily injury.


Breach of contract Any act of contract terms breaking is not included.


Employee misdeeds Employee misdeeds that do not result in loss of assets or money, are not included in Fidelity Bonds.

Are You Ready to Get Covered?

Prefer to speak with a CoverWallet consultant? Call

(646) 844-9933