Commonly known as fidelity policy, this is bought by an employer to protect against losses such as embezzlement or theft by employees. Such acts are not covered by a Theft or burglary cover. One may buy a cover applying to all employees or for a set of employees identified individually or by their designations. Some businesses such as banks, brokerages, cash carriers, and security firms are required to have a fidelity bond cover by law. Companies with business in the USA may be required to have a fidelity bond cover if they manage retirement fund of employees under ERISA. Irrespective of the statutory requirements, it is always prudent to protect the company by having a relevant fidelity cover in place.