Fidelity Bonds

What is a fidelity bond?

A fidelity bond is a type of surety bond that protects a business and its clients from financial losses resulting from the illegal and dishonest acts of the business’ employees. They are common among companies like janitorial services that send employees onto a client’s premises.

The fidelity bond ensures that the business’ clients will be reimbursed for funds lost to employee theft, fraud, or embezzlement. The bonds are not mandatory but many businesses choose to get bonded to improve credibility and stand out to potential customers.

Unlike typical surety bonds which involve three parties, fidelity bonds are more like an insurance policy with a two-party arrangement between the insurance company and the insured.

Popular types of fidelity bonds

Janitorial and Business Services Bonds

Many cleaning services will get a janitorial bond to provide reassurance to their potential clients. If an employee were to steal from a client, the surety company would pay for the losses (up to the bond amount) and the business would be responsible for reimbursing the surety company.


ERISA bonds are a type of fidelity bond designed to protect individuals who participate in employee benefit plans. The bonds ensure that the fiduciaries or individuals in charge of overseeing the employee benefit plans manage the assets honestly and responsibly.

How much does a fidelity bond cost?

Fidelity surety bond costs vary based on the amount of coverage purchased and the number of employees working for the bonded company. The business chooses a bond amount that will provide sufficient protection for its clients. The surety company then sets a premium rate (the percentage of the total bond amount you pay as a premium) based on the business’ number of employees.

ERISA surety bond costs vary based on the required bond amount and the type of assets held under the plan. Every fiduciary of an employee benefit plan is required to post a bond equal to 10% of the plan assets. If the plan includes non-qualifying assets worth more than 10% of the plan’s funds, the bond amount is the value of the non-qualifying assets.

How do you get a fidelity surety bond?

To obtain a fidelity surety bond, you must determine the type of bond that you need and apply online through a surety company or agency.

The surety company will collect personal and business information such as names, addresses, social security numbers, and employee identification numbers. Their underwriters will use this information to review your financial health to assess the risk of issuing you the bond.

After your application is approved, you will receive a surety bond quote with the bond premium. If you accept the quote, you pay the premium and the surety company issues you the bond.

EZ Surety makes it easy to obtain a variety of fidelity bonds. You can complete our online application in minutes and many bonds are issued instantly.