Fidelity Bond

[bad2thebond]

Why isn't personal credit taken into consideration when applying for a fidelity bond?

[Bond Magician]

Originally Posted by bad2thebond

Why isn't personal credit taken into consideration when applying for a fidelity bond?

It is a lot like insurance in that it is strictly based on the amount of coverage that you're looking for and the number of employees/owners that there are. Unlike all other surety bonds, a fidelity bond is not required by the state in order to obtain your license.

[Admin]

Originally Posted by Bond Magician

It is a lot like insurance in that it is strictly based on the amount of coverage that you're looking for and the number of employees/owners that there are. Unlike all other surety bonds, a fidelity bond is not required by the state in order to obtain your license.

Actually fidelity bonds are insurance. That is why credit is not taken into consideration. Bonds are a form of credit, which makes your credit history important.

[grasshopper]

Why are fidelity bonds even called bonds if they are basically insurance policies? Am I missing something?