Where to buy a fidelity bond and what the process looks like

You buy a fidelity bond from an insurance company or broker, not from a government agency. The process starts with contacting insurers who write this type of coverage in your state, providing details about your business and the employees or roles you want to cover, and paying a premium. Most insurers can issue a bond within days to a few weeks, depending on how much underwriting they need to do.

The cost and speed depend on the size of your business, how many people you're bonding, how much coverage you need, and your company's history. A small business bonding one employee for $5,000 to $10,000 in coverage typically moves faster and costs less than a large operation bonding dozens of staff for six figures. Some insurers specialize in small businesses and can quote you over the phone; others require a formal application and background checks.

You don't need a lawyer or broker to buy a fidelity bond, though some businesses use them. You can contact insurers directly, compare quotes, and purchase online or by phone. The bond itself is a document the insurer issues to you; you keep it on file and show it to clients, employers, or regulatory bodies that require it.

Key Takeaways

  • Fidelity bonds are sold by insurance companies, not government programs, and you purchase them the same way you would any other business insurance.
  • The cost and time to issue depend on your business size, the number of employees to cover, the coverage amount, and your company's background.
  • Most insurers can provide a quote within hours and issue a bond within days to a few weeks once you submit the application.
  • You can buy directly from an insurer or through a broker; you do not need a lawyer, though some businesses choose to use one.
  • Once issued, the bond is a document you keep and present to clients, employers, or agencies that require proof of coverage.

Types of fidelity bonds and which one you need

Employee dishonesty bonds (also called crime or theft bonds) cover losses from theft, embezzlement, or fraud by your employees. This is the most common type for small and mid-sized businesses. You choose a coverage limit — often $5,000 to $100,000 — and the bond pays your business if an employee steals money or property up to that amount.

Blanket bonds cover all employees without naming them individually. This works well if you have high turnover or don't want to update the bond every time someone joins or leaves. Scheduled bonds list specific employees by name and role, which can be cheaper if you're bonding only a few people.

Fidelity bonds for specific roles exist for contractors, real estate agents, notaries, and other licensed professions. These are often required by law or by the licensing board. A notary public bond, for example, is usually required by your state's secretary of state office and protects the public if you fail to perform your duties correctly.

Check your state's regulations, your industry's licensing requirements, or your client contracts to see which type you need. If you're unsure, ask the insurer — they can tell you what's standard for your business type.

What information you'll need to provide

When you contact an insurer, have ready: your business name, structure (sole proprietorship, LLC, corporation), how long you've been in business, the number of employees, and the coverage amount you want. For employee dishonesty bonds, you may need to list the names, titles, and salaries of the people you're bonding, or confirm that you want blanket coverage.

The insurer will also ask about your business's history — whether you've had losses, claims, or prior bonds. If you're bonding a specific employee, they may run a background check. Be honest about this; misrepresenting your history can void the bond later.

For profession-specific bonds (notary, contractor, real estate agent), have your license number and any regulatory documentation ready. Some states require the bond to be issued in a specific format or amount; the insurer will know this, but it helps to have your license or regulatory notice on hand.

How much a fidelity bond costs

Fidelity bond premiums vary widely and depend on coverage amount, business type, number of employees, and your claims history. A small business bonding one employee for $10,000 might pay $100 to $300 per year. A larger operation bonding 20 employees for $50,000 might pay $500 to $1,500 annually. Profession-specific bonds (notary, real estate) often have set rates by state, ranging from $50 to $500 per year.

The premium is usually paid annually, though some insurers offer monthly payment plans. When you renew, the cost may increase if you've had a claim or if you're expanding coverage. Shop around — rates differ between insurers, and some offer discounts for bundling with other business insurance.

Do not confuse the bond premium (what you pay the insurer) with the bond amount (the coverage limit). If you buy a $25,000 bond, you might pay $200 to $400 per year for that coverage, depending on the factors above.

Timeline from application to having the bond in hand

For straightforward cases — a small business with no claims history, bonding one or two employees — many insurers can issue a bond within 24 to 48 hours of receiving your application. You may be able to get a quote and purchase online the same day.

If the insurer needs to run background checks, verify your business license, or review your financial history, it can take 5 to 10 business days. Profession-specific bonds sometimes require verification from the licensing board, which can add a week or more.

Once issued, the insurer sends you the bond document (usually by email and mail). You keep the original and provide copies to whoever requires it — your employer, your clients, or the regulatory body. Some jurisdictions require the bond to be filed with a government office; the insurer will tell you if that's the case.

Where to find insurers that write fidelity bonds

Start by calling your current business insurance agent or broker — they often write fidelity bonds or can refer you to someone who does. If you don't have an agent, search online for "fidelity bond" plus your state and business type (for example, "fidelity bond for notary public in Texas").

Major insurance companies that write fidelity bonds include Travelers, Hartford, Chubb, and Nationwide, though not all write all types in all states. Smaller specialty insurers focus on specific industries — contractors, real estate, nonprofits — and may offer better rates or faster service for your niche.

Get quotes from at least two or three insurers before deciding. Compare the premium, the coverage amount, any exclusions or conditions, and how quickly they can issue. Ask whether the bond renews automatically or whether you have to reapply each year.

What happens if you need to file a claim

If an employee steals money or property, or if you fail to perform a duty covered by the bond, you report the loss to your insurer. You'll need to provide documentation — bank records, police reports, or evidence of the loss — and the insurer will investigate.

If the claim is valid, the insurer pays your business up to the bond limit. However, the insurer may then pursue the employee for repayment (called subrogation). The bond protects your business, not the employee.

For profession-specific bonds (notary, real estate), a claim usually comes from a third party — a client or customer who was harmed by your error or misconduct. The insurer defends you and pays damages up to the bond limit if you're found liable.

Renewing your fidelity bond

Most fidelity bonds renew annually. The insurer will contact you before expiration with a renewal notice and premium. If nothing has changed — no claims, no significant change in business size or coverage — renewal is usually straightforward and takes a few days.

If you've had a claim or your business has grown significantly, the insurer may ask for updated information or adjust your premium. If you want to increase coverage or add more employees, tell the insurer when you renew; they can adjust the bond without a gap in coverage.

If you switch insurers, make sure the new bond is issued before the old one expires so there's no lapse. Some regulatory bodies or clients require continuous coverage, and a gap can cause problems.

Frequently Asked Questions

Do I need a fidelity bond if I'm self-employed with no employees?

Not unless your state, licensing board, or clients require it. Self-employed notaries, contractors, and real estate agents often need a bond by law or contract. If you're a sole proprietor with no employees and no regulatory requirement, you typically don't need one.

Can I get a fidelity bond if I have a criminal record?

It depends on the offense and how long ago it occurred. Some insurers will not bond someone with a theft or fraud conviction; others will, but may charge a higher premium. Be honest on your application — lying about your history will void the bond. Ask the insurer directly whether they can work with your background.

What's the difference between a fidelity bond and a surety bond?

A fidelity bond protects your business from employee theft or dishonesty. A surety bond guarantees you'll perform a contract or follow the law — it protects the other party, not you. Contractors, notaries, and licensed professionals often need surety bonds. The application process is similar, but the coverage is different.

Can I cancel my fidelity bond before the year is up?

Yes, but you may not get a refund of your premium, depending on your insurer's policy. If you no longer need the bond, contact your insurer and ask about cancellation. If a regulatory body requires the bond, make sure you have a replacement in place before you cancel.

Do I need a fidelity bond to start a business?

Only if your state, industry, or clients require it. Most small businesses don't need one to start. Check your state's business registration requirements, your industry's licensing rules, and any contracts with clients to see if one is mandated.