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BONDING
A third party fidelity bond protects the client from losses occurring due to theft by the contract service guards and similar acts. If a contract service carries such a bond, it's to the client's benefit. This coverage is often quite expensive and is not usually considered a requirement for bidders. Probably the most common limit on such bonds is $50,000, but some firms carry up to $100,000. Theft insurance is not the same product as a fidelity bond, although some contract service representatives would like prospects to believe that it is. Theft insurance is relatively inexpensive, does not offer the client company near the protection of a fidelity bond and is more for the protection of the contract service.
If a contract service claims to have bonded personnel, the consumer should verify that the coverage is, in fact, a fidelity bond. Many guard firms must, by statute, provide the state with a license bond. This is of little benefit to the client, but frequently contract service representatives are talking about this coverage when they claim to be bonded. (This is often an unintentional misrepresentation since many security agency managers do not know the difference between these two types of bonds.)
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