What is an Employee Theft Bond?
As a business owner, you want to believe that you only hire the best people for your company. Sometimes, though, a person might join your team who is less trustworthy than they appeared. This is why so many businesses look into employee theft bonds. An employee theft bond protects your business and your clients from possible loss due to theft involving one or more employees.
What kind of businesses might need an employee theft bond?
Businesses that send employees into the homes or businesses of their clients should consider obtaining an employee theft bond. This includes housekeeping and janitorial services, plumbers and electricians, remodeling, and general contracting.
Companies that handle client money, such as accounting firms, should also have a bond that protects their clients from potential embezzlement or fraud by employees. Also, businesses that conduct research and development could be at risk from employees who have access to intellectual property and might share that information with competitors for a hefty payout.
How does this bond benefit my business?
Having these types of bonds for your business helps give potential customers more confidence in choosing your company for their needs, especially when your employees will be coming into their homes. It serves as a guarantee that their property and money will be safe while the work is conducted.
This type of bond also offers protection for your business in case an unscrupulous employee starts stealing large amounts of money from you. A loss of funds for your business could mean closing your doors. Having this bond will help you recoup those losses.
Are there different types of employee theft bonds?
Surety companies offer a few different options in employee theft bonds so you can choose the one that best meets your needs.
- Primary commercial blanket bond. This type of bond covers your business for all employees working for your company.
- Blanket position bond. An employee theft bond that only covers a single position in your company and all employees that are designated in that position.
- Name schedule fidelity bond. You will provide a list of specific employees that are covered by this bond. In order to make a claim, you will need to have definite proof that an employee on that list is responsible for the theft.
How much is an employee theft bond?
Each bond price is different depending on your company and the number of people that need to be covered, as well as the amount of the bond. Contact one of our licensed bond agents to get a free quote for an employee theft bond and get your quote quickly.