Merchants Bonding has filed a new Fidelity program in California that includes Theft Guard Bonds and ERISA Bonds, with coverage effective upon regulatory approval.

The Theft Guard coverage indemnifies insureds for direct losses of money or other property resulting from fraudulent or dishonest acts committed by employees, including theft, embezzlement, or forgery, whether acting alone or in collusion. Losses must be discovered within two years after the bond period ends, and coverage applies within the United States, including employees temporarily working abroad.

The program offers multiple coverage variations, including standard employee dishonesty protection and janitorial or service contractor bonds covering losses at client premises. Endorsements are available to extend coverage to officers, volunteers, sole proprietors, partnerships, independent contractors, and other labor arrangements.

The ERISA component includes Inflation Guard and tiered bond limits with prepaid premium options, with bond amounts required to meet federal minimums based on plan assets.

The filing also introduces explicit exclusions for losses related to cryptocurrency and non-fungible tokens, including theft, disappearance, destruction, or changes in value.

The filing was submitted on January 22, 2026, as a new program initiative under the Fidelity and Forgery line of business for the Iowa-based surety.