What the California Escrow Agent (For Fidelity Bond Deductible) is for
Federal law (ERISA) requires most employee benefit plans to bond the people who handle plan money, and service businesses use fidelity bonds to protect clients from employee theft.
The bond amount is set by the agency, utility or fund that asks for it. If the bond holder doesn't meet their obligations, a valid claim is paid up to that amount, and the bond holder repays the surety.
What the price depends on
The starting rate. A credit check and an underwriter's review set your final price, and you see it before you pay.