What is a Colorado Employee Theft Bond?
Protect your business from employee theft today!
Employee theft is a major problem in any business, and its damaging effect can even result in a business’ bankruptcy and closure.
Numbers don’t lie…
- According to the United States Chamber of Commerce, 75% of employees steal once, at the very
- Businesses lose $50 billion annually. And that’s just in the retail business alone!
- Store employees steal three times more than the customers
Employee theft is definitely one of the most costly and common problems businesses are facing since time immemorial, but they are more prevalent nowadays.
Various ways can be taken to safeguard your business from employee theft. Here are some of them:
- Zero tolerance for unethical behavior
- Establish clear organizational policies and procedures
- Implement a strong system of checks and balances
- Establish a code of ethical business conduct
- Monitor your employees well
- Obtain an Employee Theft Bond
The last one is what we are going to expound on.
An Employee Theft Bond is a type of Fidelity bond that aims to protect the business in case of losses due to theft and other fraudulent acts of the insured’s employees. This bond is also referred to as Employee Dishonesty Bond.
An employee theft bond is optional. However, many businesses opt to obtain this type of bond as a safety net in case such dishonest acts happen. It also provides peace of mind to business owners.
This bond will be a legally binding agreement between the following:
- Obligee – the business owner or company
- Principal – the employee
- Surety – the surety bond company that will provide the protection
How much is the bond amount?
The bond amount varies. It will depend on the number of employees the company has.
How can I obtain this bond?
You can easily get one by submitting a bond application.
The next step would be the underwriting process. An expert underwriter will evaluate your financial history, your business performance history, and your credit score.
Once done, we will issue the bond and send it to you immediately!
The Employee Theft bond will protect you from these common types of employee theft and more:
Embezzlement – when a trusted person within the business organization fraudulently takes the business’ money or property and uses it for a different purpose. This is also known as larceny.
Skimming – when an employee intentionally diverts the company’s fund to himself or another employee.
Check Tampering – the employee alters a company check for his benefit
Payroll Fraud – stealing cash from the business’ payroll system
Time Theft – when an employee is paid for the time that he did not put work into
Expense Reimbursement Theft – asking reimbursement for fake entries in the expense report
Need to get bonded now? Start here!