The Fidelity Bonds
The Fidelity Bonds belong to Branch I of the classification of the different types of bonds that exist in Mexico. They are issued to repair the patrimonial damage that an employee may cause to his employer.
Its main objective is to protect the assets of companies from possible losses derived from illicit behavior committed by their employees. The Fidelity Guarantees guarantee the repair of the damage caused by one or more employees who commit a patrimonial crime against the beneficiary’s assets or for which the latter is legally responsible.
The types of crime that cover the Fidelity Bonds are: Theft, Fraud and Abuse of Trust. Some benefits that can be obtained when contracting this type of bond are:
It helps to prevent fraudulent acts or frauds since it makes it more difficult and even impossible for the fraudster to find an opportunity to do so.
Through preventive sessions held in companies, employees are made aware of the application of the program and the implementation of internal control systems, which can highlight the fraud committed and the person involved, which in the vast majority of the cases dissuade the person from carrying out the illegal act or fraud.
In case of committing the crime or embezzlement, the Fidelity Bonds help the timely detection of it.
The Fidelity Bonds represent a financial coverage for the company in case of fraud or illegal acts.
With the Fidelity Bonds, the administrative employees of an organization can be strengthened, as well as sellers, insurance and bond agents, workers, among others.
As in the other branches or types of bond, in order to contract a Loyalty Bond, it is required to give the surety certain documentation that varies depending on whether it is a Physical or Moral Person who requests it.