What is a California Employee Theft Bond?
While most employees are honest individuals, theft continues to be a very real liability for employers. Whether it’s the potential for theft at your place of business or risks associated with having your employees in the home or office of your customers, a California employee theft bond provides a layer of financial coverage to business owners.
Who Needs a California Employee Theft Bond?
Employee theft bonds are optional bonds that are purchased by companies who have employees in high-risk positions.
These positions include:
- Accounting – do you have employees who have access to sensitive financial information for your company?
- Research and Development – do your employees have access to proprietary or highly valuable intellectual property?
- On-Site – do your employees work in the homes or offices of your clients?
Why Do I Need a California Employee Theft Bond?
Any employee who has access to valuable company assets - including automobiles, expensive equipment, and cash – could be a potential theft risk. Employee theft bonds protect the company against losses associated with employee theft. Particularly in the early stages of business, a significant financial loss due to employee theft can result in bankruptcy for business.
It is suggested that employees are bonded from the day they are hired. If an employer finds that an employee is unable to be bonded due to their history of fraudulent behavior, the employer can decide whether this employee is a good fit for the business.
There are three types of employee theft bonds to consider:
- Name Schedule Fidelity Bond – this bond covers an accurate list of designated employees provided by the employer to the insurance company. Making a claim against this type of surety bond requires absolute proof that a particular employee stole from the business.
- Blanket Position Bond – this bond covers a given situation and anyone who works in that role, as opposed to correctly named employees. As new employees get hired into the position, the bond automatically covers them. This bond does not require absolute proof that a specific individual committed the theft; it just requires evidence that a theft happened.
- Primary Commercial Blanket Bond – this bond covers all of the employees at your company regardless of their position. Irrespective of whether one employee or multiple employees committed the theft, this bond covers the company.
How Much Does a California Employee Theft Bond Cost?
California employee theft bonds vary depending on the needs of the company. Therefore, the cost associated with these bonds also varies significantly. The best way to know how much your employee theft bond will cost is to request a quote today.
Get Started Today!
If you have employees who work in high-risk positions for your company, it’s important for you to be covered with an employee theft bond.