FOR ALL YOUR SURETY BOND NEEDS.
These surety bonds are general for all states.
Learn more about fidelity bonds, and apply today. Absolute Surety offers surety bonds nationwide through a convenient online application system.
Fidelity bonds are a type of business service bond designed to protect a company and its clients against financial loss resulting from the illegal acts committed by a bonded employee on the client’s premises. Fidelity bonds are voluntary, not mandatory. Employee dishonesty bonds that protect employers against financial loss from the criminal acts of their employees are a common type of fidelity bond.
These bonds are particularly attractive to businesses that send employees into clients’ homes or business premises, such as cleaning, dog-walking, painting, carpet cleaning, and house-sitting companies. Companies that provide in-home services buy these bonds for the financial protection afforded their clients and also as a way of demonstrating to potential clients their honesty and commitment to customer satisfaction. Voluntarily purchasing a fidelity bond gives a company an advantage over competitors that are not bonded.
Because these bonds are optional, the company purchasing one acts as both the obligee and the principal in the surety bond agreement. Any client that suffers a financial loss due to theft, property damage, or other dishonest act committed by an employee on the client’s premises can file a claim against the company’s fidelity bond.
The surety company that issued the bond will conduct an investigation to determine whether the claim is legitimate and will pay any valid claim. The bonded company, as the principal, is then required to reimburse the surety for the amount of the claim.
The principal chooses the bond amount that will provide an adequate amount of protection for clients, but pays only a percentage of that amount as the bond premium. The surety company will determine what that percentage, the premium rate, will be. Premiums are based on the type of business, the number of employees included on the bond, the company’s hiring practices, and other factors. This rate can be as low as 0.5%.
We stand ready to get you the fidelity bond you need at a very affordable rate. Complete our convenient online application form to get started!
