Understanding Employee Dishonesty Bonds

When running a business, there can be a lot of things to consider, in fact there will be many things that you will have to deal with that you may never have thought about when you first started running a business. One of these things is protecting your business from employee theft and fraud.

While many employers would not want to think that they have to worry about their employees doing things like committing theft or fraud, these are real concerns that you have to guard against. One way to do this is by getting an employee dishonesty bond for your business.

What Is an Employee Dishonesty Bond?

Employee dishonesty bonds are types of fidelity bonds that help protect your business from dishonest actions done by your employees. Many different acts can be covered by these bonds, including theft of money or property, fraud, forgery and embezzlement. One thing to keep in mind, though, is that these bonds don’t usually protect your customers from your employees, only your company.

Why Do You Need One?

The reason you need these bonds are simple, it can save your business a lot of trouble in the long run. Even though most companies do a careful job vetting their employees and would not like to think of them participating in these kinds of behaviors, it does happen regularly. By having bonds, you can be prepared in the event that these things do happen, and rest assured knowing that you are covered.

How Does It Work?

In the event that you do experience fraud or theft by an employee at your business, you will then need to make a claim against the bond that you have purchased. Once you have made the claim, the surety company will then have to investigate your case to make sure that the fraud or theft happened as you have claimed.

Once they have looked into it, and decided that your claim is valid, you will then be compensated for the amount that was stolen. One thing to keep in mind though, is that in some cases the employee in question may have to be convicted before the surety company will look into your case.

Bottom Line

There are a lot of things to think about and keep track of when you are running a business. There may even be things to deal with that you would never have considered, like employee dishonesty bonds. That doesn’t mean, though, that you need to feel overwhelmed. By taking your time and doing your research, you can find the bonds and the surety company that is right for you.

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