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: This policy covers legal costs related to your work performance, such as a client who sues because your advice caused a financial loss. It's sometimes referred to as errors and omissions insurance (E&O).
Cyber liability insurance: This policy helps finance businesses recover from data breaches and cyberattacks. It's strongly recommended for any business that handles personal information.
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.