The cost of a fidelity bond primarily depends on the size of the bond. The amount of sensitive information handled by your company – and the number of employees who can access it – may also affect the cost.
Among Insureon customers, 21% of small businesses pay less than $600 per year for a fidelity bond, and 42% pay between $600 and $1,200 per year. These figures were derived from an analysis of bonds purchased by Insureon's customers.
The amount of coverage chosen for a fidelity bond varies widely, ranging from as low as $5,000 to $10 million. Most Insureon customers (56%) choose fidelity bond coverage in the amount of $1 million.
The cost of a fidelity bond is usually a small percentage of the bond's total amount of coverage. That's why the coverage size of the bond is the biggest factor in determining its cost.
For example, the median cost of a $1 million fidelity bond, our most popular option, is $1,054 per year, or less than $90 per month. A fidelity bond with $100,000 of coverage costs only $280 per year, or less than $25 per month.
A surety company would charge more for a larger bond sum, but the fidelity bond would also provide greater coverage for employee theft, embezzlement, and other dishonest acts by employees that cause financial loss.
The graph below shows how much bonding companies charge for fidelity bonds with an increasing amount of coverage.
Other factors that may affect the cost of a fidelity bond include:
Small businesses that provide a 401(k) plan may need an Employee Retirement Income Security Act (ERISA) bond, also called a fiduciary bond, which protects employee benefit plans from theft and fraud. For an ERISA bond, the cost depends on the value of the retirement plan’s assets.
Premiums vary based on the type of insurance policy, type of business, policy limits and deductibles, and other factors. See our small business insurance cost overview or explore costs for a specific policy.