Employee Dishonesty Bond

Learn more about employee dishonest bonds, and apply today. Single Source Insurance offers surety bonds nationwide through a convenient online application system.

What Are Employee Dishonesty Bonds?

Employee dishonesty bonds are a type of fidelity bond. Fidelity bonds are different than many other surety bonds because they protect the bond purchaser (the principal), rather than the public or a state agency. Specifically, employee dishonesty bonds protect the purchaser against financial losses resulting from the dishonest acts of an employee, such as embezzlement, check forging, fraud, or the theft of money or merchandise. Don�t confuse employee dishonesty bonds with business service bonds, such as janitorial bonds, which protect a business�s customers against loss due to acts of theft by the business�s employees.

Who Needs Them?

These bonds are not mandated by a government agency or other obligee. Business owners voluntarily choose to purchase them to protect themselves.�In 2016, the median loss suffered by small and midsize businesses as a result of employee theft was $289,864. Few small businesses can survive a loss of that magnitude, so purchasing an employee dishonesty bond can be a lifesaver.

How Do They Work?

The terms of some these bonds may require proof that an employee has been convicted of an illegal act before the employer can file a claim. In other cases, there is no conviction requirement, leaving it up to the surety company to investigate the claim and determine whether or not it is valid. Be sure you know whether the bond you�re purchasing imposes a conviction requirement.

In the event that a court of law (or surety company) determines an employee has committed a dishonest act resulting in a financial loss for the business, the surety company will pay the business owner�s claim, up to the amount of the bond. The employees of a business are not a party to the bond and have no responsibility to repay the surety company any amount paid out on a claim.

What Do They Cost?

These bonds are relatively inexpensive considering the benefits they offer. They can be purchased for an annual premium of as little as $100 to $400.

The surety company takes into account several factors in determining the exact cost the bond, including the desired amount of protection, the number of employees working for the applicant, and the security and control measures that are in place to deter and detect criminal acts�such as a camera-based surveillance system.

Apply Now

Use our convenient online system to apply for an employee dishonesty bond today.

Why Employee Dishonesty Bonds are Important

Employee dishonesty can have a devastating impact on a business, leading to significant financial losses. An employee dishonesty bond protects the business owner by providing coverage against acts of theft, fraud, or embezzlement committed by employees.

According to industry data, the median loss suffered by small and midsize businesses due to employee theft was nearly $290,000 in 2016. An employee dishonesty bond can help mitigate these risks and ensure the business's financial stability.

Key Features of Employee Dishonesty Bonds

Employee dishonesty bonds provide coverage for a wide range of dishonest acts, including theft of money or merchandise, check forgery, and fraudulent activities. Unlike other types of business service bonds, these bonds protect the business owner rather than the public or a state agency.

The cost of an employee dishonesty bond is based on factors such as the desired coverage amount, the number of employees, and the security measures in place to prevent and detect criminal acts. Businesses can tailor their coverage to meet their specific needs and risk profile.

Applying for an Employee Dishonesty Bond

The process of applying for an employee dishonesty bond is straightforward and can be done online. Businesses need to provide information about their operations, the number of employees, and the security measures in place.

Once the application is approved, the surety company will issue the bond and provide the necessary documentation. In the event of a claim, the surety company will investigate the matter and, if the claim is valid, compensate the business owner for the financial loss.

Protecting Your Business with Employee Dishonesty Bonds

Investing in an employee dishonesty bond is a proactive step to safeguard your business against the risks of employee theft and fraud. By transferring these risks to a surety company, you can focus on growing your business with the peace of mind that your financial assets are protected.

Whether you're a small startup or a larger enterprise, an employee dishonesty bond can be a valuable tool in your risk management strategy. Explore your options and find the coverage that best suits your business needs.

All States Surety Bond