One of the biggest ways in which a business can lose assets is through employee fraud. Unfortunately, businesses are often subject to theft from the very people whom they employ. When this theft or other type of fraud occurs, it is very difficult for the business to recover the lost assets. The difficulty to recover the assets can stem from an employee being hard to track down after they commit the act, or the funds being spent by the person who stole them. Regardless of the method through which the assets are lost, if an employee commits fraud against a business it can harm the business significantly. As such, it is important for a business to have a method by which it can recover the lost funds in the event an employee commits fraud.
Bonding employees, or obtaining an employee dishonesty bond, is one of the best ways a company can protect itself against employee theft and fraud. A bonded employee is essentially an employee who has an insurance policy associated with them which will reimburse the company they work for in the event they steal or commit fraud against the company. Many times, these policies will reimburse the full amount of the company’s losses from the employee theft.
How To Obtain Bonding
Obtaining a bond on an employee is relatively simple and straightforward. There are many insurance companies that have policies that cover employees who commit fraud against their companies. A business owner can easily search the internet, find one of these companies and then compare the premiums and coverage limits offered by the various companies. It is important to compare companies’ policies as they will generally have differing premium costs and coverage limits. Once the policy is found that offers the right amount of coverage for the right price, it is time to contact the insurance company and request the policy.
Protecting a business is difficult, but having the right insurance makes it much easier.