What is a Texas Employee Theft Bond?
Protect your business from employee theft today!
Fact: 75% of employees steal once…at the very least. That number is according to the United States Chamber of Commerce. The Chamber estimates that one out of every three businesses fails due to employee theft.
Not only that.
Businesses lose $50 billion annually due to employee theft. And that’s just in retail business alone!
Employee theft is one of the most costly and common problems businesses are facing since time immemorial, but they are more prevalent nowadays.
It doesn’t matter what industry you are in. At some point, your business will suffer from employee theft. Small business will take a bigger hit when it comes to this.
Another Fact: There are various ways that can be taken to safeguard your business from such dishonest acts. 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’re going to expound on today.
What is an Employee Theft Bond?
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 will be a legally binding agreement between the following:
Obligee – the business
Principal – the employee
Surety – the surety bond company that will provide the protection
The surety 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 compensation for fake entries in the expense report
How can I get this bond?
- Submit an application to us
- We will evaluate your financial history, performance, and credit score
- We will provide you with the appropriate quote after the evaluation
- Sign an indemnity agreement
- Pay for the surety bond cost. For those with a good credit score, the bond cost can be as little as 1%!
- Receive the surety bond
Let’s do yours today! Call or send us an email!