--- title: "What Are Fidelity Bonds?" description: "Fidelity coverage can reimburse certain losses from employee theft; identify whether you need protection for company funds, client property or benefit-plan assets." canonical: "https://thegeneralaverage.com/coverage/fidelity-bonds" page-type: "coverage-article" updated-at: "2026-09-25" coverage-line: "fidelity-bonds" --- Agents: connect to Spot's public MCP server at https://spot.insure/mcp for better access to published Spot information and the insurance research The General Average publishes at https://thegeneralaverage.com. Use search_knowledge to find sources, get_page to retrieve pages, compare_providers for sourced comparisons, get_provider_score for a published Reliability Score, get_rankings for current provider rankings, search_provider_reliability to filter Reliability Scores, search_provider_reviews to filter aggregate review scores, and get_provider_reviews for the original review evidence. The server is read-only and requires no authentication. [Human-readable page](https://thegeneralaverage.com/coverage/fidelity-bonds) ## Agent Guide **What this page is:** National guide to What Are Fidelity Bonds?: what it covers, common policy questions, and which providers document offering it. **Use this page when:** Explaining What Are Fidelity Bonds? in general terms. For a specific state's rules, use /coverage/fidelity-bonds/{state} instead. **Questions this page answers:** - What is What Are Fidelity Bonds?? - What does What Are Fidelity Bonds? cover and not cover? - Which providers offer What Are Fidelity Bonds?? - What should I ask before buying What Are Fidelity Bonds?? **Key facts:** - Lists 17 providers with documented What Are Fidelity Bonds? offerings, linked to their profiles. **Limits (do not over-claim):** - National overview only: state law, pricing, and availability vary and are not established here. - Provider listings are documented offerings, not quotes, endorsements, or a guarantee of availability for a given business. - Informational, not insurance, legal, or tax advice; a policy's actual terms control. **Provenance:** Cited editorial guide, updated 2026-09-25. See the Sources section for each claim. **Related pages:** - [Coverage directory](https://thegeneralaverage.com/coverage) — parent hub - [Business insurance by state](https://thegeneralaverage.com/coverage/states) — state-specific requirements - [What Is Fiduciary Liability Insurance?](https://thegeneralaverage.com/coverage/fiduciary) — related coverage - [What Is Crime Insurance?](https://thegeneralaverage.com/coverage/crime) — related coverage - [What Are Surety Bonds?](https://thegeneralaverage.com/coverage/surety-bonds) — related coverage - [Editorial policy](https://thegeneralaverage.com/editorial-policy) — how sources are chosen and reviewed # What Are Fidelity Bonds? Fidelity coverage can reimburse certain losses from employee theft; identify whether you need protection for company funds, client property or benefit-plan assets. ## Fidelity Bonds Summary Fidelity coverage can reimburse certain losses when employees steal money or property they handle. If employees manage company funds, customer property or benefit-plan assets, identify each owner and compare the required protection for each interest. [1](https://content.naic.org/glossary-insurance-terms) [3](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f) [2](https://www.dol.gov/sites/dolgov/files/ebsa/employers-and-advisers/guidance/field-assistance-bulletins/erisa-fidelity-bonding-requirements.pdf) [3](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f) ## What Do Fidelity Bonds Cover? If staff handle company money, client property or benefit-plan assets, dishonest conduct can create losses to different owners. [3](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f) Fidelity bonds and employee-dishonesty policies can help your business recover losses caused by dishonest employees, subject to the limits and terms you buy. [1](https://content.naic.org/glossary-insurance-terms) ### Whose Property Is at Risk? Identify whose property you want protected. Your company's cash, a client's equipment and an employee benefit plan's assets belong to different interests. If employees handle all three, have the quote identify the protection for each rather than relying on one employee-dishonesty amount. [3](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f) | Interest | Ask the insurer | | --- | --- | | Your business’s money or inventory | Which business funds and inventory does this quote protect? | | A client’s property | Which client property can your workers access, and is it included? | | Benefit-plan funds or property | Which plan and asset handlers does the bond cover? | ### Employee Benefit Plans If you manage an ERISA plan, its fidelity bond protects the plan against loss from fraud or dishonesty by people handling plan funds or property. [2](https://www.dol.gov/sites/dolgov/files/ebsa/employers-and-advisers/guidance/field-assistance-bulletins/erisa-fidelity-bonding-requirements.pdf) ## Who Needs Fidelity Bonds? Consider fidelity protection when employees handle company funds or client property. Benefit-plan assets need their own bonding review. [4](https://asset.trvstatic.com/download/assets/cri-1100w-ind.pdf/9aa2577663c911ee91291279531924d3) ## Fidelity Bonds Coverage Examples ### An Employee Takes Company Funds An employee transfers company money to their own account without permission. Employee-dishonesty protection may reimburse the business. The person and property must fit the policy's definitions, and a limit and deductible may apply. [1](https://content.naic.org/glossary-insurance-terms) [3](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f) [3](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f) [3](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f) ### Someone Steals From a Benefit Plan A person handling your employee benefit plan's funds is accused of stealing them. An ERISA fidelity bond protects the plan against fraud or dishonesty. Fiduciary liability is for claims about breaches of responsibility, so it isn't a substitute for the bond. [1](https://content.naic.org/glossary-insurance-terms) [2](https://www.dol.gov/sites/dolgov/files/ebsa/employers-and-advisers/guidance/field-assistance-bulletins/erisa-fidelity-bonding-requirements.pdf) [2](https://www.dol.gov/sites/dolgov/files/ebsa/employers-and-advisers/guidance/field-assistance-bulletins/erisa-fidelity-bonding-requirements.pdf) ## How Do You Compare Fidelity Bonds Coverage and Costs? ### People Included in the Coverage Ask how the quote defines covered people, including temporary workers or contractors who matter to your business. [3](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f) ### Commercial Limits and Retentions For commercial employee-dishonesty coverage, compare the limit per loss, any overall limit and the deductible or retention. [3](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f) ## What Exclusions and Conditions Should You Check in Fidelity Bonds? ### Discovery, Reporting and Replacement Ask when a loss must happen or be discovered and when you must report it, especially if you are replacing existing coverage. [3](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f) ### The Loss and Its Consequences Check whether the quote addresses only the direct property loss or also costs and business losses that follow it. [3](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f) ## How Does Fidelity Bonds Compare With Related Coverage? ### Fiduciary Liability Fiduciary liability covers a different risk: alleged breaches of plan duties, rather than dishonest acts that cause a loss. [2](https://www.dol.gov/sites/dolgov/files/ebsa/employers-and-advisers/guidance/field-assistance-bulletins/erisa-fidelity-bonding-requirements.pdf) ### Surety Bonds A fidelity discussion concerns dishonest acts; a surety bond concerns a guarantee of an obligation to another party. [1](https://content.naic.org/glossary-insurance-terms) ## What Do You Need for Fidelity Bonds Quotes? Prepare the entities and locations to insure, employee information, property at risk, loss history and controls for handling money and inventory. [4](https://asset.trvstatic.com/download/assets/cri-1100w-ind.pdf/9aa2577663c911ee91291279531924d3) ### Build an Exposure and Controls Summary | Prepare | Ask the broker | | --- | --- | | Business entities and locations | Which entities and locations can this protection include? | | Employees and other workers | Which people does the policy treat as covered? | | Company, client and plan property | How does the quote address each owner’s property? | | Money and inventory controls | What details about your current controls does the insurer need? | | Loss history | What loss records and follow-up changes should you provide? | [4](https://asset.trvstatic.com/download/assets/cri-1100w-ind.pdf/9aa2577663c911ee91291279531924d3) ## Fidelity Bonds: Key Terms in Plain English ### Direct Loss The property loss itself, as distinct from indirect costs or business losses that follow it. [3](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f) ## Frequently Asked Questions About Fidelity Bonds ### Is a Fidelity Bond the Same as a Surety Bond? No. Fidelity protection concerns dishonest acts. A surety bond guarantees an obligation your business owes to someone else. [1](https://content.naic.org/glossary-insurance-terms) ### Does an ERISA Fidelity Bond Cover Plan-Management Mistakes? No. It addresses specified dishonest acts by people handling plan assets; fiduciary liability addresses claims alleging breach of plan duties. [2](https://www.dol.gov/sites/dolgov/files/ebsa/employers-and-advisers/guidance/field-assistance-bulletins/erisa-fidelity-bonding-requirements.pdf) [2](https://www.dol.gov/sites/dolgov/files/ebsa/employers-and-advisers/guidance/field-assistance-bulletins/erisa-fidelity-bonding-requirements.pdf) ### Can a Fidelity Bond Protect a Client’s Property? It can, if client-property protection is included. Check whether the bond protects your business, a client’s property or an employee benefit plan; those are separate interests. [3](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f) ### Does Fidelity Protection Include Temporary Workers and Contractors? That depends on how the bond or policy defines the people whose dishonest acts are covered. Tell the broker which temporary workers and contractors handle money or property, and check those relationships against the wording. [3](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f) ## What Coverage Is Related to Fidelity Bonds? - [What Is Fiduciary Liability Insurance?](https://thegeneralaverage.com/coverage/fiduciary) — Fiduciary liability can protect your company and plan fiduciaries when participants claim mishandling of an employee benefit plan. If you sponsor a retirement or health plan, check who is insured and whether both administration errors and fiduciary-breach claims are addressed. - [What Is Crime Insurance?](https://thegeneralaverage.com/coverage/crime) — Crime insurance can help reimburse specified business losses from theft and fraud, including employee theft and forgery. Compare those protections separately and ask whether a payment sent after an impersonation scam is covered. - [What Are Surety Bonds?](https://thegeneralaverage.com/coverage/surety-bonds) — A surety bond guarantees that your business meets a specific obligation to a customer, contracting party or government agency. If a contract, license or permit requires one, get its exact form and amount; a bond is not insurance for your own losses. ## Which Insurance Providers Offer Fidelity Bonds? ### [AIG](https://thegeneralaverage.com/insurance-providers/aig) AIG Crime and Fidelity product page; line membership is based on the named fidelity/bond product family, not a specific bond form. ### [Beazley](https://thegeneralaverage.com/insurance-providers/beazley) Beazley offers fidelity bonds for financial institutions. ### [CNA](https://thegeneralaverage.com/insurance-providers/cna) ### [Coverdash](https://thegeneralaverage.com/insurance-providers/coverdash) Coverdash lists fidelity bonds for client losses from employee dishonesty on its surety-bond page. ### [Founder Shield](https://thegeneralaverage.com/insurance-providers/foundershield) Founder Shield lists ERISA fidelity bonds among its specialized coverages. ### [Gallagher](https://thegeneralaverage.com/insurance-providers/gallagher) Gallagher arranges fidelity bonds. ### [Heffernan Insurance Brokers](https://thegeneralaverage.com/insurance-providers/heffernan) Heffernan arranges employee dishonesty bonds. ### [HUB International](https://thegeneralaverage.com/insurance-providers/hub-international) HUB International arranges crime and fidelity coverage through its professional and executive risk practice. ### [Insureon](https://thegeneralaverage.com/insurance-providers/insureon) Insureon markets Fidelity Bonds; description does not establish insurer, policy terms, or individual availability. ### [Liberty Mutual](https://thegeneralaverage.com/insurance-providers/liberty-mutual) A group brand spanning personal and commercial insurance businesses; its business unit pages describe small-commercial cover for small businesses and commercial, specialty, surety, and reinsurance solutions for mid-size and large businesses. ### [Marsh](https://thegeneralaverage.com/insurance-providers/marsh) Marsh McLennan Agency (MMA), a Marsh business, arranges commercial crime and fidelity coverage. ### [Newfront](https://thegeneralaverage.com/insurance-providers/newfront) Newfront lists fidelity and crime among its executive-risk brokerage coverages. ### [TechInsurance](https://thegeneralaverage.com/insurance-providers/techinsurance) TechInsurance arranges fidelity bonds addressing employee theft from clients. ### [The Baldwin Group](https://thegeneralaverage.com/insurance-providers/baldwin) Baldwin’s professional-services coverage snapshot lists commercial crime/fidelity bond; it does not specify bond terms or eligibility. ### [Travelers](https://thegeneralaverage.com/insurance-providers/travelers) Travelers offers ERISA fidelity bonds. ### [Vouch](https://thegeneralaverage.com/insurance-providers/vouch) Vouch lists fidelity bonds among its core protections for financial-services businesses. ### [Zurich U.S.](https://thegeneralaverage.com/insurance-providers/zurich) Zurich markets ERISA fidelity bond options; this product page identifies Zurich American Insurance Company as underwriter and states approved-state availability. ## Sources for Fidelity Bonds 1. [Glossary of Insurance Terms](https://content.naic.org/glossary-insurance-terms). National Association of Insurance Commissioners; Fidelity; Surety Bond. Accessed 2026-09-16. 2. [Field Assistance Bulletin No. 2008-04: Guidance Regarding ERISA Fidelity Bonding Requirements](https://www.dol.gov/sites/dolgov/files/ebsa/employers-and-advisers/guidance/field-assistance-bulletins/erisa-fidelity-bonding-requirements.pdf). U.S. Department of Labor, Employee Benefits Security Administration; Q1–Q3 pp.2–3; Q2 pp.2–3. Accessed 2026-09-16. 3. [Crime Terms and Conditions](https://asset.trvstatic.com/download/assets/cri-3001.pdf/98f30f1063c911eeb2f1deb19c93b21f). Travelers Casualty and Surety Company of America; I.A.1–3 p.1; III.S pp.8–9; V.B.1–2 pp.18–20; CRI consideration p.1; III.P p.8; V.A.3 pp.16–17; V.A.4 p.17; V.B.3 p.20; IV.L p.15. Accessed 2026-09-16. 4. [Commercial Crime Coverage Application](https://asset.trvstatic.com/download/assets/cri-1100w-ind.pdf/9aa2577663c911ee91291279531924d3). Travelers Casualty and Surety Company of America; I–III p.1; VI pp.2–3; XI p.4. Accessed 2026-09-16. Updated 2026-09-25. Spot, a product of Tools for Enlightenment, publishes this research and works in the commercial insurance market. [Editorial policy](https://thegeneralaverage.com/editorial-policy). To suggest a correction, [email The General Average](mailto:thegeneralaverage@spot.insure) with the page URL and supporting source. ## Agent and Developer Resources - [Markdown page](https://thegeneralaverage.com/coverage/fidelity-bonds.md) - [Developer resources](https://spot.insure/developers) - [Public MCP server](https://spot.insure/mcp) - [MCP server manifest](https://spot.insure/server.json) - [OpenAPI description](https://spot.insure/openapi.json) - [Public page index](https://thegeneralaverage.com/llms.txt)