What is a key component that businesses must consider when seeking a fidelity bond?

When businesses seek a fidelity bond, a key consideration is the honesty history of their employees. A fidelity bond is designed to protect businesses from losses due to dishonest acts committed by employees, such as theft or fraud. Understanding the integrity and past behavior of employees helps businesses assess the level of risk they are facing. If a company has employees with a history of questionable conduct, the likelihood of a claim against the bond may be higher, which could affect the terms of the bond or the ability to obtain one at all.

Other factors, such as the size of the property, the number of customers, and the types of services offered, do not directly influence the risk of employee dishonesty that the fidelity bond is designed to cover. These elements may be relevant to other types of insurance coverages but are not pertinent when specifically considering the underwriting and necessity of a fidelity bond.