Employee dishonesty bonds are an important component of risk management plans for many types of businesses. Sometimes referred to as fidelity bonds, employee dishonesty bonds, just as the name implies, protect businesses from dishonest acts by employees. Here is an overview—and expert advise on how to secure an employee dishonesty bond.
Fraud, Forgery, Stealing…
Of course no employer wants to imagine that employees will commit these kinds of dishonest acts—and the reality is that most employees won’t. However, dishonesty can occur and when it does, it can be very problematic for businesses. As Investopedia explains: “If a company has employees that commit fraudulent acts, the company itself may be exposed to legal or financial penalty in addition to the individual employee or employees who committed the act. As a result, companies are at risk of being exposed to such penalties, especially firms with a large number of employees. Fidelity bonds …cover firms for such damages.”
The types of loss that employee dishonesty bonds typically cover include theft, fraud, and forgery. Any business can experience acts like these—that’s why every business can benefit from employee dishonesty bonds. Obtaining this type of fidelity bond is a good risk management practice. Investopedia notes that some businesses, like brokerages and insurers, are “specifically required to carry protection proportional to their net capital.” You can learn more about employee dishonesty bonds right here.
Obtaining An Employee Dishonesty Bond?
Bonding can be confusing, but Colonial Surety always makes it easy and speedy. As a direct, national writer of all types of bonds, Colonial meets the specific fidelity bond needs of all kinds of businesses, in every state of the country. The steps are easy—get a quote online, fill out the information, and enter a payment method. Your Employee Dishonesty Bond will be ready to print or download instantly. With Colonial, it really is that simple.
The amount of the bond is dependent upon the amount of coverage requested for potential losses due to employee dishonesty. Colonial offers our lowest possible direct rate. Our reasonable premium is based on the number of employees you wish to cover and the amount of potential loss coverage you wish to receive.
Good To Know: ERISA Fidelity Bond?
Another type of fidelity bond that businesses need to know about is an ERISA fidelity bond. Importantly, the U.S. Department of Labor requires company’s that sponsor retirement plans to secure ERISA bonds. As Investopedia explains: “These ERISA fidelity bonds usually encompass bonding anyone who normally has access to the company’s retirement assets.” Experts caution that insufficient or expired ERISA bonds are a trigger for Department of Labor audits. Failure to have current and adequate ERISA Bond coverage at all times is in fact among the most common compliance issues plaguing retirement plan sponsors. Uniquely, Colonial Surety includes retroactive ERISA fidelity bond coverage for years when the plan was not adequately covered and provides cost-saving multi-year coverage, ensuring the ERISA bond remains Department of Labor compliant for the life of its term.
Colonial’s three point coverage package offers retirement plan sponsors the greatest value, protection and efficiency. Conveniently, Colonial provides: the required ERISA bond to protect the assets of the retirement plan from theft; Fiduciary Liability coverage to protect you and your assets from personal liability; and, Cyber Liability coverage to safeguard your company and plan from covered losses and expenses in the event of a cyber breach.
Growing Your Business?
As a leading, national, direct seller and writer of surety bonds, fidelity bonds and insurance products for a wide range of professionals and industries, Colonial Surety is here to help. Our portfolio of bond and insurance products has what you need to keep your business moving forward. For example, our portfolio of license and permit bonds has over 4,000 digital bonds at the ready for professionals and entrepreneurs of all kinds. Offering a company sponsored retirement plan? Good for you! Take advantage of our special ERISA Bond Package for retirement plan sponsors. Important insurance coverages for small businesses are right here too.
Incorporated since 1930, Colonial Surety Company is an A (Excellent) rated insurance company by A.M. Best. We are Treasury listed and licensed and admitted in all U.S. states and territories. As a leading, national, direct writer of affordable insurance and bonds for businesses of all kinds, we’re here to help you.