why fidelity bonds are used
fidelity bonds can be considered part of a business s approach to enterprise risk management these insurance policies function as a sort of protection should the company suffer losses caused by fraudulent or criminal employee actions taken against the company or its clientele this can include cash thefts from the business as well as if the employee steals from a customer of the company acts of forgery by an employee that affect the business may also be covered by this type of policy robbery and burglary of the company safe destruction of company property and the illicit transfer of funds are covered by fidelity bonds too 3types of fidelity bondsfidelity bonds are broken down into various types each covering specific things the most common forms of fidelity bond are another type of fidelity bond is used by certain states such as alaska michigan and texas to encourage employers to provide job opportunities to applicants who have backgrounds that make them high risk potentially untrustworthy workers with these fidelity bonds the employer would be reimbursed should the employee behave dishonestly 567