Fidelity Bonds protect against employee dishonesty, which is a large problem in the United States. Most companies don't know they have an internal theft problem, and make the discovery by accident too late. The U.S. Commerce Department estimates the annual cost of employee theft at $40 billion, which is ten times that of street crime! The American Management Association estimates that employee theft causes 20% of all business failures and losses due to employee theft for business with under $100,000 in annual sales is 35 times higher than those with over $5 million in sales. As a small business owner, you have a very high risk of suffering from the dishonesty of your employees.