Employee Dishonesty

[Phillies]

If I suspect that an employee has stolen from my company can I file a claim against my Employee Dishonesty Bond?

[Admin]

Employee dishonesty policies (Fidelity Bonds) will only pay out if the theft occured during the term of the bond and he/she is found guilty by the courts.

[Carboholic]

Is an employee dishonesty bond a type of surety bond? It sounds more like a form of insurance. Do I benefit in the event of a claim?

[Phillies]

I guess you could say an employee dishonesty bond is like insurance. It's to protect the company from theft by an employee (assuming that the employee's position is covered by the bond). However, in order for the bond to pay the employer, the employee must be convicted of the crime in a court of law.

[Admin]

You are both correct. A fidelity bond (employee dishonesty) is not a surety bond, but a form of insurance. Suretyship involves three parties, where insurance only involves two. A surety bond protects the obligee, where insurance protects the principal of the policy.