A fidelity bond
is a business insurance policy that insures an employer against employee dishonesty, such as theft, forgery, larceny, and embezzlement.
Segal Select Insurance Services Inc, a fiduciary insurance and fidelity bond
broker in the Taft-Hartley market, has announced that it has acquired a brokerage.
Segal Select Insurance Services, the insurance brokerage subsidiary of The Segal Group, Inc., works with plan sponsors and boards of trustees to obtain a full range of fiduciary insurance and fidelity bond
coverage as well as employment practices liability insurance and cyber liability coverage.
ERISA Fidelity Bonds
: To be combined or not to be combined?
By statute, the Federal Deposit Insurance Company can require insured financial institutions to maintain fidelity bonds
to insure against such losses, and the FDIC has chosen to mandate that requirement.
Personnel: Agreements should identify who will hire personnel providing services under the agreement and who will bear associated personnel costs, including salaries, fidelity bonds
, payroll taxes, worker's compensation costs, etc.
Some organizations may wish to go one step further and obtain fidelity bonds
to cover those volunteers that will handle cash.
Available for more than 20 years, the program provides general and professional liability coverage, workers' compensation, fidelity bonds
, and employment practices liability.
Back in the days when fidelity bonds
covered losses due to employee dishonesty, insurers issued continuous policies.
The Surety Association of America, which underwrites "blanket fidelity bonds
" -- insurance policies that provide coverage against losses due to employee dishonesty -- found that insurers like AIG, Pruduential and Travelers paid out $385 million in losses in 1998 on $674 million in premiums underwritten -- a high loss ratio of 57 percent.
The letter asked for numerous forms and documents, including plan documents, summary plan descriptions, tax returns, annual reports, audited financial statements, board and committee minutes, fidelity bonds
, service provider agreements and more.
Professional liability insurance, directors' and officers' (D&O) liability insurance and fidelity bonds
fail to provide relief.