The Lambertville record. [volume] (Lambertville, N.J.) 1872-1968, 1885-11-18
FIDEIdTY INSURANCE..
A System That Protects Employers From
Their Clerks.

Ineir ClerkSs
Although the business of fidelity insur.
mce, carried on as speciality, is yet com.
psratiyely in its infancy" said an officer OF
one of the New York companions recently,
" it would probably be surprising to many
to learn how rapidly it has grown even in
the past year. The fact is that as soon as
it becomes known how profitable it is, and
what field it offers, there will be plenty of
competition. As yet there are probably
not more than half dozen companies in
the country which make specially of this
kind of business, if there are that many, and
these have not yet been in existence for
sufficient time to enable them to make
fair test of its possibilities"
Then the scope of the business is much
larger than is generally supposed 2"
Certainly. 1t was started in London
only few years ago by the giving of Sc
curity by certain corporations, in connec-
ton with their regular insurance business,
in the case of persons occupying minor po-
sitions of trust, as clerks in banking and
mercantile houses, bookkeepers, railway
employers and others of that class, when
.he amount of the risk was not great
How about this country ?"
Here the business has not attained such
extensive proportions, but it is growing,
and we hope in time to arrive at the results
which have been reached abroad. Now our
business is for the most part devoted to reg.
ular fidelity insurance; that is, giving
bonds for employees. The other depart
ment, which we call our court business, F"
is something which We keep entirely separ-
ate from the first. The former is, of course,
more risky, as we have no other protection
against loss than the honesty of our client
and the vigilance with which We guard
against deception. This business alone.
however, keeps us busy and is continually
increasing in Importance, as the public
come to realize its advantages"
What class of employees is included in
this department of the business? n
Well, we might say that every person
who occupies tiducary place would come
under this head, but there are some very i'm
portant exceptions. The majority of persons
for whom we furnish fidelity bonds are
clerks in banks, insurance companies, mer-
camille houses and the like, where Office
work entirely is done, and there is some.
thing of q check upon the employees. We
also do n good deal of business for railroad
and telegraph companies, bonding their
station agents and operators, when this is
required, rs it is in most cases where the
employee is responsible for moneys collected
in the business, and is at distance from
the main office. All the station agents on
the line of the Northern Pacific Railroad
are bonded by our company, as well as all
Of the Pullman car conductors between this
city and San Francisco. Railroad conduc-
tors, however, come within the class which
we call extra-hazardous, and with this OK.
ception, we have not been willing to be-
come responsible for their honesty. The
risk is too great. We also refuse to furnish
bonds for ordinary collection agents. who
travel from place to place, and whom it is
found to be very difficult to follow. The
majority may be honest enough, but the
risk is very great in most eases, rs any one
who reads the newspapers aud sees the fire.
luent stories about ebscondng agents will
admit.
" Is it customary, then, to regulate the
premiums according TO the amount of risk
taken ?p
Precisely. The ordinary premium
which is paid, as in the case of bank clerks,
for example, is I of per cent. per annum
Oh the amount of the bond. If the bond is
renewed from year to year the premium is
reduced proportionately, until it gets down
to J of per cent, which is the lowest rate
at which we assume any risk. For the haz-
ardous class, as the Pullman car conduc-
tors, the premium required is u per cent,
and this is not reduced under any circum-
stances. All other charges are between
these limits"
''What is the ordinary amount of the
bonds given ?"
" The majority of them range from ST.
900 to $4,000, although in many instances
q smaller amount is given, frequently less
than 800. Last year the premiums received
on the fidelity bonds alone amounted to over
$780, 900, while the capital of the company
is only $500,000 and, with over 6,000
clients on our books, representing nearly
avery State in the Union, you can form
some idea of the extent of the business,
which can be done in this line."