Fidelity Bonds

Employee Dishonesty Bonds Do Not Cover Employers


An Employee Dishonesty Bond is a fidelity bond that covers your company and your customers against loss caused by employee dishonesty. These fraudulent activities can include, but are not limited to employee’s theft of money, securities, or other property of the employer. Employers who want to insure against loss of customers due to an employee’s dishonest acts need this bond. Any business can purchase an employee dishonesty bond as a further protection for their business.

But did you know that Employee Dishonesty Bonds don’t cover any fraudulent activities of the owner of the employer? These bonds only cover the fraudulent activities of an employee.

This delineation makes more sense when you think about why exactly this type of bond would be purchased. Usually a business owner is trying to protect themselves against potential losses due to the fraudulent activities of the people they employ. If the bond also covered employer dishonest acts, the owner would effectively be purchasing a bond to cover its own dishonest acts. It would not need a bond to protect against this; simply not performing the fraudulent acts themselves would be sufficient. Learn more about employee dishonesty coverage.

Employers have less ability to control employees, however, so a bond may be necessary to guard against the fraudulent activities that they may do on their own. The bond functions as a way to cover employers in the case of one of their employees doing something outside the employer’s control.

So where can you easily purchase an Employee Dishonesty Bond?

Colonial offers the direct and digital way to obtain an employee dishonesty bond. We are the insurance company — which means no agent, no broker, and no middleman. The steps are easy — get a quote online, fill out your information, and enter your payment method. Your bond will be ready for print instantly. It’s that simple!

Colonial offers you the ability to purchase an I-BOND®. This is a direct issuance of surety and fidelity bonds online instantly.