Fidelity and Surety Bonds Insurance

Fidelity bond insurance is quite similar to crime insurance.  It covers losses that result from acts of fraud or theft done by specific individuals such as employees.  Fidelity bond insurance provides you, the business owner, with full first party protection against any loss of money or property due to employee theft.  Having an insurance coverage such as this will enable to you feel more comfortable leaving your business in the hands of your employees without having to waste precious time spying on them.

Surety bond insurance is a contract wherein the insurance company acts as the surety for principal (you and your business) to an obligee (another person or entity).  In other words, the insurance will assure the obligee that your goods and/or service are capable of living up the terms of the contract you have agreed to.  If you fail to live up to your end of the bargain, the surety (insurance company) will have to pay the obligee.

There are different types of surety bond insurance.  These include contract surety bonds that guarantee a project owner that the contractor hired will do his job according to specification; commercial surety bonds which really covers several bonds such as court bonds and public official bonds.  Some other surety bonds include hazardous waste removal, wage, welfare or fringe benefit and credit enhancement financial guarantee bonds.

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