You’ve probably heard of bonding requirements or bonds that protect your business and wondered what these were. Keep reading for everything you need to know about these bonds and how they can protect your business from employee theft and fraud.
What Are They?
Employee dishonesty bonds are a way to protect your business from any potentially damaging acts that your employees commit. They protect against fraud, forging checks, embezzlement, theft, and more. However, they do not cover employees stealing from customers. While there are bonds for that, this is not the same bond. A dishonesty bond protects your business from dishonest acts.
Keep in mind that these are not legally required. However, they are a great option for protecting a business. They are straightforward to deal with. In fact, many businesses like them because they are easier to navigate than standard commercial insurance.
How Much Do They Cost?
This is an inexpensive option for the amount of coverage you receive. Typically, employers only pay a few hundred dollars per year and receive hundreds of thousands of dollars in coverage. Small bonds can start as low as $100 per year. The exact amount you pay per year is based on how many people you employ and the coverage you choose. You will need to contact a provider to get an accurate estimate of how much your bond would cost.
How Do They Work?
These are relatively simple when it comes to protecting your business from dishonest acts. For example, if an employee commits one of the covered acts, all you have to do is make a claim. Once the company validates the claim, you will receive compensation for your losses.
These bonds are a great way to protect your business from dishonest acts committed by your employees. In addition, they are relatively cheap and simple to understand.