Surety and Fidelity Bonds – Salt Lake City, UT

If you own a business in Salt Lake City, surety and fidelity bonds help make sure your company and its customers are protected and that the integrity of your business is upheld. Being a business owner involves a certain amount of risk, but these bonds help minimize the risk you take when entering into a contract with another party, including employees and contractors.

Why does my business need surety and fidelity bonds in Salt Lake City?

Different bonds protect businesses and customers from various things, including:

1. Theft by employees or contractors
2. Theft and fraud (including forged signatures, theft of customer information, unauthorized use of financial information)
3. Ensuring work is done on time and to completion, and that parties hold up to their end of the deal

To help you determine what kind of bond coverage would be useful for your company, get to know more about two primary bond types: surety and fidelity bonds.

What are surety and fidelity bonds?

Surety and fidelity bonds are both useful to your business, but they serve different purposes and work in different ways.

As a business owner, you can supply these to your customers to give them the peace of mind that a project will be completed, and you may also require it from contractors to give yourself that same peace of mind.

On the other hand, fidelity bonds offer protection from financial or physical losses associated with a dishonest employee or independent contractor. If, for example, your employee steals or embezzles from your company, a fidelity bond will shield you from the loss associated with that employee’s actions.

Fidelity bonds are grouped into two categories: first-party and third-party.

First-party fidelity bonds are associated with purposely fraudulent or damaging behavior by an employee of the company, while third-party fidelity bonds protect you from fraudulent activity by a consultant, independent contractor, or another employee who works on a contract basis.

The helpful professionals at Salt Lake City Insurance will help you determine what kind of bonds your company needs, and help you find a plan that fits your needs and your budget.

 

 

Get A Quote