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Fidelity Bond Insurance

A Self-Funded Fidelity Bond Plan was developed by SARM and approved by delegates at the 1993 SARM Midterm Convention. The SARM Fidelity Bond Self-Insurance Plan was implemented on January 1, 1994. Currently 292 of the 296 RMs in the province, participate in this plan. 

Coverage under the Plan is issued in the name of the participating Rural Municipality and all employees are automatically covered. Therefore, new Administrators or other Employees do not have to complete an application form to be covered by the bond.

There are three types of coverage that are included with every policy. These are described below:

Fidelity Bond Coverage:  This is the primary coverage type which provides protection to the RM from financial losses due to dishonest or fraudulent acts of their employees. 

Registered Mail Coverage:  This coverage is intended for those municipalities that do not have banking facilities available and make bank deposits by registered mail.  The limit for this coverage is $50,000 and cannot be increased.  It is included in every policy with no additional premium charged.

Money and Securities Coverage:  This coverage insures the municipality for theft of money and securities by someone other than an employee.  Break-in and theft of petty cash is the most common example of a claim under this coverage, however electronic forms of financial loss are becoming more common.  A limit of $2,500 is included in every policy at no additional charge, and can be increased for an additional premium.


The RM is required to notify SARM as soon as possible and in any event not later than fifteen (15) days following the discovery of any fraudulent or dishonest act on the part of any employee (in the case of a claim under the Fidelity Bond Coverage); or of an occurrence which may give rise to a claim for a loss (in the case of a claim under the Registered Mail Coverage or the Money and Securities Coverage). In addition, the RM is required to file a Proof of Loss form within four (4) months thereafter; and is also required to assist with the investigation and adjustment of claims.

For more information, visit Members Only


Colin Warnecke, Manager of Risk Management
cwarnecke@sarm.ca or 306.761.3946