Running a business is a complicated endeavor even though it also means you’re realizing your own personal dreams. In addition to the usual challenges, managing a business means dealing with theft and other types of criminal activity. While it’s easy to assume that only outside forces will seek to victimize your business, that’s not always the case. Your own employees may be looking for ways to steal from you, which is why it’s vital to protect your business against this possibility.
An employee dishonesty bond is a special kind of fidelity bond that will help protect your business. It’s intended to protect against criminal activity committed on behalf of your employees. This type of fidelity bond will protect against:
- Theft of money or merchandise
While an employee dishonesty bond isn’t required by law, many businesses choose to invest in one. It provides additional protection that can help your business recover from incidences of theft and fraud. This becomes increasingly important as incidences of criminal activity continue to rise in our communities.
This type of fidelity bond is inexpensive, especially in comparison to the potential loss your business may suffer. In most cases, coverage will only cost a few hundred dollars per year. The exact amount will depend on how much coverage you feel your business needs, but it comes out to a minimal expense.
How does the employee dishonesty bond work? It’s similar to an insurance policy in that you file a claim once you have suffered a loss. The surety company will investigate the incident to determine if the employee theft or fraud really did occur. Once the surety company is satisfied that the claim is authentic, the business will be awarded a settlement for the amount stolen by the employee. This helps ensure businesses won’t suffer unnecessary losses at the hands of their employees. While you may screen each employee and conduct extensive background checks, there’s no guarantee that you won’t hire a dishonest employee. A fidelity bond can help you recover from employee theft or fraud.