Skip to Content Old republic surety logo Old republic surety logo
  • About
    • Careers
      • Career Opportunities
      • Great Benefits
      • Culture
    • Our History
    • Our Underwriting Philosophy
    • Branch Locations
    • Executive Team
    • Field Leadership
    • Corporate Governance
    • Corporate Parent Company
      • Why Old Republic?
      • Financial Ratings
      • Old Republic Group of Companies
    • Get Appointed With Old Republic Surety Company
    • Contact Information
  • Contract Bonds
    • Why Old Republic Surety for Contract Bonds
    • Bid Bonds
    • FastBond
    • Maintenance Bonds
    • Payment Bonds
    • Performance Bonds
    • SBA Bond Program
    • Bonds for Growing Contractors
    • FAQ: Contract Bonds
    • Punch List for Contract Bonds
    • Resources
      • Contract Bond Terminology
      • Contract Videos
  • Commercial Surety & Fidelity
    • Types of Commercial Bonds
      • Court Bonds
      • Federal Bonds
      • Fidelity Bonds
      • License & Permit Bonds
      • Miscellaneous Bonds
      • Public Official Bonds
    • Fidelity
      • Business Services Bonds
      • ERISA Bonds
    • Credit-based Performance Bonds
    • BONDSTAR
    • FAQ: Surety Bonds
    • FAQ: BONDSTAR
    • Direct Bill
    • Commercial Resources
  • Claims
    • Commercial Surety Claims
      • Arizona Contractors License Bond Claims
      • California Contractors License Bond Claims
      • Oregon Construction Contractors Bond Claims
      • Property Brokers Surety Bond Claims
      • Washington Contractors Surety Bond Claims
    • Contract Surety Claims
    • Fidelity Claims
  • Blog
  • Contact
ORSC Blog
    • Contract Bonds
    • Surety Bonds
    • Commercial Bonds
    • Fidelity Bonds
    • Bonding Capacity and Bondability
    • Old Republic Surety Employees
    • Underwriting
    • Subcontractors
    • WIP Reports
    • Case Study
    • Bond Claims
    • Corporate Crime and Fraud
    • General Contractors
    • Jobs in Surety
    • Fastbonds
December 4, 2020

Fast Facts About Fidelity Bonds and Public Official Bonds

Becky Nichols Becky Nichols
  • Fidelity Bonds

Fast Facts FidelityFidelity and public official bonds both involve protection from fraudulent or dishonest behavior by individuals. Are you worried your employees might steal from you? Then it would help if you looked into fidelity bonds. Are you a public figure required by law to be bonded? If so, you will need a public official bond.

Fidelity Bonds and Public Official Bonds

Old Republic Surety offers both types of bonds, which can be required by law, contract, or by an entity that wants to be protected in a “what if” situation.

Fidelity Bonds

A fidelity bond is a type of insurance that protects businesses from losses incurred as a result of fraudulent or dishonest acts (as defined within the policy) by employees or specified individuals.

Although it is referred to as a bond, a fidelity bond is technically an insurance policy. It is not tradable and cannot accrue interest the way an investment bond does. A fidelity bond is also known as employee dishonesty insurance and covers a variety of dishonest or fraudulent acts by employees or other individuals. Some examples of fraudulent acts covered by a fidelity bond include theft, embezzlement, or forgery.

Fidelity bonds can be purchased for specific individuals in a company, such as those who will have access to funds or bank accounts. Blanket fidelity coverage can be purchased to cover a greater number of employees, with a specified loss limit.

A fidelity bond can also provide a business with extra protection in areas that may not be covered by another property-casualty policy. For instance, a crime policy may not provide adequate coverage for some types of employees or may not cover all fraudulent acts or situations.

There are basically two types of fidelity bonds:

  • First-party fidelity bonds (or blanket coverage) protect businesses against wrongful acts (fraud, theft, forgery, etc.) committed by their employees.
  • Third-party fidelity bonds protect businesses against wrongful acts committed by people working for them on a contract basis (e.g., consultants and independent contractors).

There are also more specialized fidelity bonds. ERISA bonds protect 401K and retirement plans from dishonesty and fraud committed by individuals associated with the management of the covered plans. There are also fidelity bonds specifically for businesses whose employees are in possession of customers’ property (such as valet parking services, cleaning companies, or courier services).

Public Official Bonds

Public official bonds are required by statute as a guarantee that officials will faithfully and honestly perform their duties in the office.

Like other surety bonds, public official bonds are a three-party agreement between the principal (the public official), the obligee (the government or public), and the surety that underwrites the bond.

Although specific requirements vary depending on state or local statutes, public official bonds are typically required for most individuals who hold public office, whether appointed or elected. Individuals whose positions require bonds include mayors, sheriffs, judges, court clerks, tax collectors, treasurers, and town administrators or supervisors.

The bond requires the individual to reimburse the governmental entity that obliged them to be bonded and to pay a fixed amount if they do not faithfully or honestly perform their duties in the office. A variety of public entities require public official bonds. They can include governments (federal, state, county, municipal), courts, school districts, and universities.

Old Republic Surety provides a variety of fidelity bond coverages as well as public official bonds, although the processes differ depending on the individual, business type, or the official’s position. Some bonds are easily issued, while others require credit histories or a review of the entity’s controls (for example, countersignature of checks, third party bank reconciliation, or regular audits) that are in place to protect their assets and funds.

If you have any questions about fidelity, public official bonds, or related blanket coverage, please contact your nearest local Old Republic Surety branch.

 

Topics Covered

  • Fidelity Bonds
  • Commercial Bonds
  • Corporate Crime and Fraud
  • Surety Bonds
Becky Nichols
Becky Nichols

Becky Nichols is the Director of Commercial Underwriting for the Midwest Region at Old Republic Surety. As an underwriter in the surety industry for 30-plus years, she previously worked with CNA Surety/Western Surety and Nationwide Mutual Insurance companies. She has a bachelor’s degree in marketing from Southwest Minnesota State University. In her personal time, she likes to shop for bargains and take road trips to the Rocky Mountains. She also loves dogs, especially Labrador retrievers. She is known to have not one, not two, not even three, but several at one time.

Recent Posts

Commercial Bonds 3 min read
Behind the Scenes: Understanding the Claims Process
x Rudy Dominguez August 01, 2025
Old Republic Surety Employees 3 min read
One Year in Surety: What I Expected, What Surprised Me and Why I’m Glad I Made the Jump
x Spencer Shaw July 25, 2025
Old republic surety logo
  • Careers
  • Blog
  • Pay Online
  • Agency Login
18500 W Corporate Drive, Suite 170, Brookfield, WI 53045
800.217.1792
©2025 Old Republic Surety Company All rights reserved.
  • Privacy Policy
Old Republic Insurance Group logo