Bonded Employees - Why They Are Beneficia
Bonding an employee is an insurance agreement guaranteeing repayment for financial loss caused to the covered organization by the act or failure to act of an employee. Bonding is used to protect the financial operations of companies and unions. This insurance policy is intended to protect businesses from losses caused by acts of fraud or dishonesty by officers, employees, or other representatives.
Why should I bond my employees?
Purchasing a bond plan keeps your employees honest. But more important than maintaining employee honesty, a bond plan protects your business. Statistics have shown that more than one-third of bankruptcies are caused by internal theft.
When should I bond my employees?
Most insurance companies have a policy of bonding employees as soon as they enter the company, hoping to prevent future theft. It is more likely that internal theft would be committed by a long-time employee, someone that has been with the company for at least 10-15 years, rather than a new employee. Seasoned employees know the ins and outs of the company’s accounting system. They know how to slowly move money without anyone noticing, and by the time the theft is noticed, it is too late to stop it from causing damage. read more »