Employee Theft Bonds

Despite taking precautions to only hire honest, ethical employees, it is not always possible. There is always the possibility of an employee taking advantage of a business or customer when no one is looking. Bonding employees in high-risk job positions protects owners from these situations.

What Are High-Risk Job Positions?

Employees with access to valuable company assets, including automobiles, equipment, and cash, may pose a potential theft risk.

Accounting: Despite regulations and legislation included in the Sarbanes-Oxley Act, publicly traded businesses may still be at risk through accounting departments. Even experienced accounting employees in small and medium-sized businesses have been known to "work the system" and embezzle funds through skimming, larceny, and fraud.

Research & Development: Highly valuable intellectual property is also high risk for theft. Corporate theft in R & D departments can lead to hefty financial losses.

Door-to-Door: If employees work directly in the homes or offices of clients they are high-risk employees and easy targets for blame when something goes missing. Bonding these employees from theft gives employers and clients peace of mind.

Benefits of Bonding

Employee theft bonds are an expense for businesses, however the benefits outweigh the costs. They provide a valuable marketing tool for attracting customers, especially for businesses with employees that work directly in clients' homes. Clients feel more comfortable and confident hiring a company that guarantees to protect their property while on the job.

Start-up and small businesses with low capital greatly benefit from bonding employees against theft. If an employee of such a company steals a significant amount of money, the company may have difficulty reimbursing the customer, and may even face bankruptcy.

Bonding employees from the moment they are hired can help a company hire honest and trustworthy employees. If an employee cannot be bonded due to past fraudulent activities, it may assist companies in sifting through potential employees.

Types of Employee Theft Bonds

Name Schedule Fidelity Bond:

• Covers a designated list of employees
• Employees may be added or changed at any time
• Claims require absolute proof that a specific employee listed on the schedule committed the act

Blanket Position Bond

• Provides blanket coverage over a specific position (rather than a list of employees)
• New employees are added automatically
• Claims do not require absolute proof that a specific individual committed the stealing

Primary Commercial Blanket Bond

• Provides blanket coverage over each employee in the company
• New employees are added automatically
• Claims do not require absolute proof, and losses are paid regardless of the number of employees involved

Employee theft bonds are important for businesses to protect themselves against financial loss and provide added security for times when employees find a way to beat the system.

Don't put your business in jeopardy! Contact us for your free, no obligation quote today!