When do Fidelity Bonds typically become effective?

Fidelity bonds typically become effective as of a given date for a continuous term. This means that the bond is designed to cover losses occurring from the date specified in the bond document and continues to provide coverage for a set period, as long as the conditions of the bond are met. This continuous coverage is particularly important for businesses that rely on fidelity bonds to protect against employee dishonesty, theft, or fraud.

Choosing this option reflects an understanding of how fidelity bonds function in providing ongoing protection, rather than being limited to specific circumstances like task completion or future dates, or only coming into play under certain conditions such as when a claim is filed. The continuous term aspect is crucial for businesses, as it ensures that they have sustained coverage against potential risks associated with their employees over time.