What is an Iowa Employee Theft Bond?
Protect your business from employee theft today!
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 known as the 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.
Those who have excellent credit scores may qualify for a very low bond premium or just 1% of the bond amount!
Find out what you need to pay by getting your FREE quote here!
How can I obtain this bond?
You can easily get one by submitting a bond application to us.
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!
Types of Employee Theft Bond
Name Schedule Bond
The coverage of the bond is limited to the employee or employees named on the surety bond. The business entity will be compensated if the employee named on the bond commits misconduct such as theft or fraud.
Blanket Commercial Bond
This type of bond will cover all of the company’s employees. If any of the employees commit theft or fraud, the company will be indemnified up to the extent of the bond’s penalty.
Blanket Position Bond
The coverage of this type of bond is specific to a position within the company. If any of the employees within the specified position commits misconduct, the company will be eligible to file a claim on the bond.
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
Ready to protect your business? Contact us today!