Sheffer Insurance

Fidelity Bonds in Southern Illinois

Fidelity bonds are different than surety bonds but help safeguard businesses just like any other insurance policy. Under a fidelity bond the surety agrees to indemnify an employer for any losses the employer incurs resulting from the dishonesty of its employees.

Fidelity coverage, also known as dishonesty insurance, is treated like an insurance policy for good reason. Employee dishonesty is subject to the same laws of predictability as fire, liability from accidents, and other perils inherently associated with business operations.

Unfortunately, whether intentional or unintentional, wrongdoings in the workplace occur every day. From embezzlement and distorted financial statements, to bribery and kickbacks. questionable business practices threaten all businesses in all industries. For this reason. an increasing number of businesses are purchasing fidelity bonds for peace of mind.

Types of Fidelity Bonds offered include, but are not limited to:

ERISA/401K/ Pension Plan Bonds

  • The Employee Retirement Income Security Act (ERISA) was created to regulate most types of employee benefit plans. ERISA requires that a fidelity bond be in place to cover those responsible for managing and handling the assets related to employee benefits. 

Blanket Bond

  • Blanket bonds cover all of the insured’s employees without specifically each employee. A key advantage of blanket bonds is that employers are not required to notify their insurance agent of of personnel changes. Additionally, these bonds eliminate the possibility of lapses from failing to have a particular individual bonded. Lastly, the blanket bond is limited to the total amount of liability imposed by the employee(s) involved in the loss.

Schedule Fidelity Bonds

  • Name schedule bonds cover the employee or employees whose names are listed on an attached schedule, each employee being covered for a certain amount.
  • Position schedule bonds cover any employee or employees who may occupy any one of the positions listed on an attached schedule, each position being covered up to a certain amount.

Let our experts talk with you about the importance of fidelity bonds so that we can identify the type and amount of coverage that suits your business's needs.  

Click here if you are in need of a Fidelity Bond in Southern Illinois.