Wednesday, June 26, 2019
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Bond of Fidelity vs Bond of Compliance

The Fidelity Bonds belong to Branch I (Fidelity) of the classification of the different types of bonds existing in Mexico. Its function is to repair the patrimonial damage that an employee may cause to the company where he works. The Fidelity Bonds are issued to protect the assets of the companies from possible frauds derived from illicit behaviors that could be committed by one or more employees, guaranteeing the repair of the damage.

The types of crime that cover the Fidelity Bonds are: Theft, Fraud and Abuse of Trust

crime

On the other hand, the Compliance Bonds belong to the Branch III of the Bond Classification in Mexico, the Administrative Bonds. Its main objective is to ensure compliance with the obligations stipulated in a contract. The performance bonds ensure that the service company will carry out the work as agreed otherwise, the contractor may make valid Bond COMPLIANCE or , it works as a kind of compensation for damages result of said non-compliance.

By means of a Loyalty Guarantee , both the administrative employees of an organization, as well as sellers, insurance and surety agents, workers, etc. can be secured. With a Compliance Bond , it is possible to guarantee the fulfillment of several types of contract, which may be: work, purchase order, order or lease.

Although the Fidelity Bonds and the Compliance Bonds have different characteristics and objectives, both are very easy to hire

Fidelity Bonds

It is important to comply with the requirements for the procedure, which consist in presenting to the surety the documentation that is required, depending on whether it is for a Physical or Moral Person and making the corresponding payment.

 

 

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