As a business owner in California, you may vet your employees thoroughly before hiring them. The background checks you performed on them during the interview process may not have discovered any serious infractions. You may have assumed you could trust all of them with the integrity and trustworthiness of your business.
Employee Dishonesty Bond
However, you can never know if or when an employee will engage in fraudulent behavior and put your business at risk. You can provide a safety net for your business by investing in an employee dishonesty bond for every person you hire.
Having an employee dishonesty bond on every worker that you hire can give your company financial protection if or when an employee engages in fraudulent behavior. For example, if one of your employees steals money from a customer’s account, the bond you have on that person can be used to recoup the lost funds. You avoid having to pay the amount plus any penalties, fees and judgments out of your own bank account.
Likewise, if one of your employees lies to a customer and costs that person money, the victim could receive compensation from the bond rather than your company’s bank accounts. You as the employer or the victim’s lawyer can make a claim against the bond company. The money for the settlement will come out of that policy and not from your business’s cash flow.
Preserve Your Company
Having these bonds in place can be vital for the financial sake of your company. Still, you may want to price them before you actually invest in them for your business.
When you visit the website of the issuer, you can price the policies and find out what the premiums will cost you every term. For information about buying bonds for your employees or to learn more about how bonds work, visit SP Bonds Bonds online at https://spbonds.com/.