The use of fidelity bonds may indemnify a company from embezzlement losses. The use also

(a) reduces the company's need to obtain expensive business interruption insurance.

(b) protects employees who made unintentional errors from possible monetary damages resulting from such errors.

(c) allows the company to substitute the fidelity bonds for various parts of internal accounting control.

(d) reduces the possibility of employing people with dubious records in positions of trust.