While most businesses perform extensive due diligence during the hiring process, a dishonest employee can slip through the cracks. The company could be held liable for the criminal actions of these workers and any resulting financial or physical losses.
Commercial crime insurance policies, also referred to as fidelity bonds, protect your business against covered losses due to the actions of dishonest employees. Strock Insurance is your one-stop headquarters for comprehensive fidelity insurance in central Pennsylvania that will safeguard your assets and provide peace of mind.
What Does Commercial Fidelity Insurance Cover?
Fidelity bonds are available that can protect you against the dishonest actions of your employees (first party) or contractors working on your company’s behalf (third party). The specific coverages they provide depend on the type:
- Employee dishonesty: This coverage type protects against various financial crimes committed by employees, such as forgery, the loss of money from securities, computer fraud, and misusing personal data like Social Security and credit card information.
- Business services: These bonds protect customers or clients if an employee commits a dishonest act at their location. A typical example is when a home services worker steals money or electronic equipment from the property.
- ERISA: The Employee Retirement Income Security Act of 1974 (ERISA) mandates that pension plan trustees carry fidelity bond coverage equal to at least 10% of the plan’s assets.
How Does Fidelity Insurance Work?
These bonds function much like any other insurance program. When a loss occurs, the company or organization, as the policyholder, should report it to their insurance agent or the insurer’s claims department as soon as possible. An adjuster will investigate the incident and determine the appropriate payout according to the policy’s terms and conditions.
Who Needs Commercial Fidelity Insurance?
Fidelity insurance is an integral component of an enterprise risk management strategy for nonprofit organizations and private and public companies. Factors to consider when determining whether you need this coverage and how much include:
- The amount of loss your organization could absorb if a dishonest or criminal act occurs.
- The effectiveness and thoroughness of your existing crime prevention process.
- Your previous experiences with crime-related losses and their impact on your business.
- The degree and type of crime risks that are prevalent in your company and industry.
What Are the Benefits of Fidelity Insurance?
It only takes one rogue employee to commit a crime that can have significant financial implications. Carrying this insurance mitigates your risk and protects you against a loss that could put your company out of business. As an owner, you’ll sleep better knowing you’ve taken an essential step to safeguard your organization and everything you’ve worked so hard to attain.
Take the Next Step and Contact Strock Insurance
Could your business benefit from commercial fidelity insurance in Cumberland, Lebanon, York or Dauphin County, Pennsylvania? The experienced team at Strock Insurance can design a custom program that meets your company’s unique protection needs and fits your budget. You’ll partner with a reputable local provider that has your organization’s best interests and insurance needs in mind.
Contact us for more information and a no-obligation quote today.