Your employees handle sensitive financial information every day, which is why fidelity bonds are so important in this industry. If an employee steals from a client, a fidelity bond will reimburse them for the amount that was stolen.
This policy provides coverage related to:
Finance and accounting professional most often need a bond to:
Sign a client contract. Financial advisors, accountants, and others in this industry often need a fidelity bond to satisfy the requirements of a client contract. The contract will usually specific the amount of coverage required.
Comply with state laws. State laws may require tax preparers and bookkeepers to carry a surety bond, which is similar to a fidelity bond. The bond protects your clients against violations committed by your business.
There are two kinds of fidelity bonds: first-party bonds protect your business, and third-party bonds protect your clients.
First-party fidelity bonds protect your business property and assets from dishonest employees. They provide reimbursement if an employee:
Third-party fidelity bonds protect your clients from dishonest employees. They can reimburse your client if an employee:
You might also see this type of bond called a business service bond.
A fidelity bond protects against dishonest employees, but finance and accounting businesses face many other risks. Financial professionals should also consider:
Professional liability insurance: Also called errors and omissions insurance, this policy can cover legal fees of lawsuits related to your business decisions, such as a client losing money from your investment advice.
Cyber liability insurance: This policy helps finance businesses recover from data breaches and cyberattacks. It's strongly recommended for any business that handles sensitive data.
Workers’ compensation insurance: Required in almost every state for finance and accounting businesses that have employees, workers’ comp can cover medical fees and lost wages for work-related injuries.
Are you ready to safeguard your financial business with small business insurance? Complete Insureon’s easy online application to compare quotes from top U.S. carriers. Once you find a policy that fits your needs, you can begin coverage in less than 24 hours.