The cost of a fidelity bond primarily depends on the amount of coverage you choose. The type of sensitive information your company handles and how many employees can access that information also affect the cost.
Small tech businesses pay a median premium of $88 per month, or $1,054 per year, for fidelity bonds. The cost varies, though, and tech companies pay more or less depending on their risks and how much coverage they choose.
Among TechInsurance customers, 28% pay less than $1,000 per year for fidelity bonds and 59% pay between $1,000 and $2,000 per year.
Businesses with a higher risk of employee fraud should consider higher policy limits to match the potential cost of an incident. Higher limits cost more, but provide increased coverage.
Tech businesses choose many different policy limits on fidelity bonds, ranging from as low as $5,000 to more than $10 million. The median for TechInsurance customers is a $1 million fidelity bond.
You can choose to either pay more for a fidelity bond with a lower deductible or pay less for a fidelity bond with a higher deductible. When your business goes to make a claim, a lower deductible is of course more beneficial.
The median for TechInsurance customers is a $10,000 policy deductible for fidelity bonds.
Pay your annual premium up front. When you purchase a policy, you can pay your premium in monthly or annual installments. The annual premium often costs less than paying month by month.
Manage your risks. Tech companies with no previous fidelity bond claims can expect to pay less for business insurance. Business owners can avoid claims by taking measures such as: