Businesses often rely on their employees to help them be successful. Without good employees, businesses might have trouble meeting the demands of their customers. The search for good employees is hard. Every company wants to fill all of their positions with the best employees. No matter how thorough the process is for hiring an employee, there is no guarantee that they will be able to do their job well. There is also no guarantee that the employee will be honest and will do things for the business in a fair and ethical manner.
It is a good idea for a company to protect themselves from dishonest and negligent employees. They may try to do this by having multiple interviews or by doing background checks before they hire an individual but that may not be enough. A dishonest employee can lie during these processes. It is also possible that different situations can turn an honest employee into a dishonest employee. The best way for a business to protect from this is through the purchase of business services bonds.
What are they?
Business services bonds protects a business from monetary losses that are a result of dishonest and negligent employees. Businesses will need these bonds to cover the damages that can occur if they have to pay clients who have lost something as a result of the actions of the company. The clients do not care who is at fault and if the loss is a result of the negligent of dishonest employee. They only care about recovering the money. With the bond in place, the business will not have to cover the loss of the client with their own money.
Who needs business services bonds
Business services bonds are very common in the financial sector. Brokerage firms that handle the money of clients can be hurt if their employees try to steal the money through dishonest or fraudulent activities. The amount of cash that these types of businesses deal with make them targets for employee theft. It is a smart decision to have the bond in place as a means of protection.
Other businesses that are contracted by people to do work in their building may also consider these types of bonds. If the employees of the contracted business have access to another businesses property, they may try to steal it or use it for their own benefit. The bond will protect these businesses from the cost of this type of employee theft. Cleaning services and repair services that use employees to do their work should consider this type of bond. It is also something that home health services, security services, dog walking and housesitting services can benefit from.
Where to get them
There are many companies that provide business services bonds. When applying for these bonds, the business will need to provide several things.
- The state where the employees will work
- The number of employees for the business
- The amount of coverage that is desired
It might also be necessary or provide financial statements and undergo a credit check to get the bond.
There will be some businesses that are required to have these bonds to get any work. Not every business will have to have them. The key thing for a business to think about when they are trying to decide whether to get these types of bonds is how much risk they are willing to assume. No matter how much you want to believe the employees in your business are honest, there are no guarantees. It is always better to have a plan in place to protect the business in the event that something unforeseen happens. The costs of these p=bonds is very low compared to the expense of dealing with the claims of the people that the business is offering their services to. The companies that offer the bonds will also help investigating any claim to make sure that it is legitimate. These are all good reasons to get a business services bo