Why does my business need surety and fidelity bonds in Salt Lake City?
Different bonds protect businesses and customers from various things, including:
- Theft by employees or contractors
- Theft and fraud (including forged signatures, theft of customer information, unauthorized use of financial information)
- 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.
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.