Commercial Surety Bonds
Fidelity Bond
Protection against loss caused by dishonest acts of employees who handle money or property.
Overview
A fidelity bond indemnifies an employer for loss of money, securities, or property caused by fraudulent or dishonest acts of covered employees.
It is widely required for cashiers, treasurers, collectors, warehouse custodians, and accountable officers.
Purpose
- Protects company funds handled by accountable staff.
- Satisfies internal control and audit requirements.
- Supports compliance with agency or lender conditions.
Typical uses
- Cashiers, tellers, and collectors
- Warehouse and inventory custodians
- Accountable officers in institutions
Who normally requires it
- Companies with cash-handling employees
- Cooperatives and financial institutions
- Schools, hospitals, and agencies with accountable officers
Parties involved
- Principal — the business or individual required to post the bond
- Obligee — the government agency, regulator, or private party protected
- Surety — the authorized Philippine insurance company that issues the bond
Typical documentary requirements
- Accomplished bond application form with obligee and transaction details
- SEC or DTI registration, Articles of Incorporation, or business permit
- BIR Certificate of Registration and latest filed tax return
- Audited financial statements for the last two to three years
- Valid government IDs of signatories and board or partnership authority
- List of positions and employees to be covered
- Internal control or cash handling procedures, if available
Final requirements depend on the obligee and the issuing insurance company. See the full requirements guide.
Typical application process
Step 1
Submit the application
Open an application in your SuretyPH portal and enter the obligee, transaction, and bond details.
Step 2
Upload requirements
Follow the guided checklist and upload each document securely to your application file.
Step 3
Pre-assessment
We review the file for completeness and endorse it to an authorized issuing insurance company.
Step 4
Quotation
The insurer evaluates the submission and issues a quotation covering premium, fees, and any collateral requirement.
Step 5
Payment and issuance
Once the quotation is accepted and the premium is settled, the insurer issues the bond for release or delivery.
Risks typically covered
- Employee theft of cash or property
- Fraudulent disbursement or falsification
- Loss of securities in employee custody
Frequently asked questions
Is coverage per employee or aggregate?
Both structures exist. The schedule and limits are agreed with the issuing insurance company.
Does it cover errors or negligence?
No. Fidelity cover responds to dishonest or fraudulent acts, not simple mistakes.
More answers on premiums, collateral, and timelines are in the general FAQs.
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SuretyPH is a digital information and lead-generation platform owned and operated by McMatthise Global Group Corporation. It does not independently underwrite, approve, bind, issue, or guarantee any insurance policy or surety bond. Evaluation, underwriting, premiums, approval, and issuance remain the responsibility of the relevant duly licensed insurance company.