Business Services Bonds: Employee Dishonesty
The Business Services Bond is especially designed to deal with dishonest acts caused by employees or people who are contracted to work in a customer’s home. Limits for this coverage range from a minimum of $2,500 to a maximum of $100,000 upon conviction.
This type of bond is great for home health care providers, security guard services, house sitters, janitors and even contracted workers like remodeling contractors, painters, electricians and plumbers.
Business service bonds are put into place to be used as a measure against economic liability for the loss of a client's money, securities, and personal property caused by deceitful acts of an employee of the insured while on the client's premises.
Employee dishonesty is wide spread. Take for example a company who runs a cleaning service agency. They have hired employees who clean the client’s premises often at night when there are no major activities going on. So then an employee gets curious one night and starts going through drawers, cabinets and finds something that is valuable. After they are done with their shift, they decide to take the valuables and hid them among the cleaning equipment and then take the items with them. The next morning or after a couple of days, the client complains that there is a certain valuables missing from their premises and they went missing on a certain cleaning day after work and they suspect one of the cleaning crew made away with them. After investigations have been carried out and it is proven by conviction that indeed one of the employees was responsible for the theft, then the business service bond will cover the loss of the items up to the specified limits.
Employee dishonesty, extends even to a point where an employee will take things like jewellery, moneys and any other valuable items that can fit into their pockets when they are working in a client’ home. Dishonest employees can hurt the reputation and financial stability of the company. That’s what makes the need for such a bond so necessary the employers who have workers, even themselves, in other peoples.