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Theft Guard Fidelity Bonds  

Employee dishonesty is a widespread problem. 


At Merchants Bonding CompanyTM, we can help mitigate the risk through our fidelity bond program: Theft Guard. With three easy options to choose from, Theft Guard is a simple application process that offers protection for businesses from loss incurred by dishonest acts of employees.  




Theft Guard Standard is designed for businesses with more exposure. These might include convenience stores, retail stores, businesses with salespeople, non-profit social organizations and non-profit businesses with employees covered. This bond covers employers against dishonest acts of their employees. It provides coverage if an employee steals from a customer or subscriber of the business service. In the event the employee performs a dishonest act, the subscriber may make a claim against the business and the business can then make a claim against the bond. The bond is intended to cover a wide range of businesses. It also contains a conviction clause, meaning the employee must be convicted before a claim against the bond can be resolved.


Theft Guard Pro is for professional businesses. These might include accountants, architects, physicians, dentists, insurance agents and attorneys. This product is for businesses that do not have exposure for employees entering into customers' homes or businesses. An employee does not have to be convicted of the crime for a claim on the bond. Coverage applies when an employee steals from the professional business; it does not provide coverage if the employee steals from a customer or subscriber. In the event the employee performs a dishonest act, the business can then make a claim against the bond. This bond will be written up to $50,000. Limits over $25,000 are subject to additional control questions.  


Theft Guard Janitorial Services is designed for a janitorial service that has exposure to employee dishonesty from the employee entering a customer's premises. This bond is designed to provide coverage to the employer for an employee who steals from a subscriber or customer of the business. It is not designed to provide coverage for an employee stealing from an employer. In the event the employee performs a dishonest act, the subscriber may make a claim against the janitorial service and the service against the bond. Often the employee has little access to the employer's assets. This bond contains a conviction clause, meaning the employee must be convicted before a claim against the bond can be resolved.  


"With the ever-increasing growth of employee theft, we want to provide our agencies with a product for acts of employee dishonesty," said Jim Holter, Vice President of Commercial Underwriting. "We believe the timing is excellent to introduce Theft Guard. We have been pleased with the interest in anticipation of this rolling out. Theft Guard should fit well for those building a package of insurance on a small business."



According to research conducted by the Association of Certified Fraud Examiners (ACFE), organizations lose an estimated 5% of annual revenues to fraud. Based on the projected United States Gross World Product for 2014, this percentage indicates a staggering estimate of losses around $3.7 trillion worldwide."  


These statistics, and the ones that follow, emphasize the need for employee dishonesty coverage now more than ever. Consider these facts:  


  • The Federal Bureau of Investigation cites employee theft as one of the fastest growing crimes in the United States.
  • The United States Chamber of Commerce reports:
    • 75% of all employees steal at least once, and half of these steal repeatedly.
    • One of every three business bankruptcies/failures (33%) are the direct result of employee theft.
  • An average of $10.1 billion per day is lost to employee theft, according to the ACFE.
  • And, the American Society of Employers promulgates:
    • The United States retail industry loses $53.6 billion a year due to employee theft.
    • Businesses lose 20% of every dollar to employee theft.
    • The average time it takes for an employer to catch a fraud scheme is 18 months.

While many varied factors contribute to employee theft, we strive to uphold a "second line of defense" for you and your clients. To learn more about Theft Guard, email Our commercial team looks forward to assisting you in getting the coverage your clients and their customers need.

The information contained herein is provided "as is" and solely for general informational purposes and is not intended to be a solicitation or an offer to sell in connection with any product or service, nor is the information a complete description of all terms, conditions and exclusions applicable to the products and services described. For complete descriptions of the terms, conditions and exclusions of the products and services offered by Merchants Bonding Company (Mutual), subsidiaries and affiliated writing companies, please contact your bonding and insurance agent.


Rates are subject to change at any time and may differ from those stated herein; please contact your bonding and insurance agent for applicable rates. Products and services referenced herein may not be available in all jurisdictions, and the effect/applicability of policy provisions including the "conviction clause" language are subject to the laws of the jurisdiction in which the policy is issued and/or the jurisdiction where the loss is incurred, please contact your insurance and bonding agent for additional information.


Merchants Bonding Company (Mutual) believes that the information provided by it is accurate at the time it is posted on this site. However, while Merchants Bonding Company (Mutual) periodically reviews and revises the information it provides on this web site, Merchants Bonding Company (Mutual) does not warrant the accuracy of the information provided by it at the time it may be accessed by visitors to the site.

Merchants Bonding Company (Mutual), Merchants National Bonding, Inc. and affiliated companies at 6700 Westown Parkway, West Des Moines, Iowa 50266