Crime insurance policies are often referred to as fidelity insurance, employee dishonesty bonds, or business service bonds. Crime coverage is a relatively new insurance policy that satisfies requirements the following bonds:
Companies often purchase fidelity insurance in addition to an ERISA bond. This coverage is optional and protects the assets of the company’s retirement plan against an employee’s actions that inadvertently cause harm to the plan’s assets. An employee acting in good faith may misinterpret regulations overseeing the retirement plan, which may result in penalties or fees being assessed to the plan. Acts in good faith and are not acts of dishonesty or fraud, they are not covered under an ERISA bond.
Employee Dishonesty Bond
While an ERISA bond is a type of fidelity bond, there are other types of fidelity bonds that are unrelated to retirement accounts, such as an employee dishonesty bond. Employee Dishonesty bonds protect your company against this type of employee theft. Examples of employee theft are embezzling money, forging checks, stealing cash, cyber fraud, and theft of merchandise or company equipment.
Business Service Bond
Business services bonds are purchased by business owners with employees who primarily work at the location of their clients. Examples of businesses that may need a business service bond are janitorial services, maids or cleaning services, gardeners, exterminators, pool cleaners, security services, carpet cleaners, painters, locksmiths, movers, pet-sitters, plumbers, and appliance repair technicians. Business service bonds protect their clients from any theft resulting from a malicious act of their employees, such as stealing and theft.