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How much do fidelity bonds cost?
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.
Median costs for Techinsurance customers
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.
Policy limits affect a tech business’s premium
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.
Deductibles also affect your premium
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.
Tips for saving money on 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:
- Doing background checks on employees
- Installing a security system
- Training employees on ethical business practices
- Taking a “trust, but verify” approach
Liability claims can be a threat to your tech business. If you’re accused of injuring someone, damaging property, or causing other harm it could easily turn into a costly lawsuit. That’s why it's important to have the right insurance protection in place to cover a range of potential liability risks.
What do tech businesses pay for other policies?
View our small business insurance cost overview or find out how much you can expect to pay for common types of business insurance.
- Errors and omissions insurance
- Cyber liability insurance
- Business owner's policy
- General liability insurance
- Workers' compensation insurance
- Commercial umbrella insurance
- Business interruption insurance
- Employment practices liability insurance
- Directors and officers insurance
- Commercial auto insurance
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