Business Services Bonds or Employee Dishonesty Bonds are an added business protection for contractors and their customers. The bond safeguards against theft of a customer’s money and personal belongings caused by employees while at a job site.
Our agency understands that small contracting businesses are looking for ways to protect their reputation and differentiate themselves from everyone else. With the security a Business Services bond offers, you can proudly inform customers they are bonded for employee dishonesty when in their home or business, differentiating you from the other contractors bidding for the job.
Cost for a Business Services Bond
Pricing for a Business Services Bond is based on the number of employees and the coverage amount required. They range in cost from $100 to $780. Businesses with over 25 employees, or requiring more coverage, will need to be further reviewed to receive a price for the dishonesty bond.
|# of Employees||Bond Coverage Amount||Bond Price|
|5 or Less||$2,500||$100.00|
Not all price points are expressed in the chart above. This is just a small sample of all automatic prices available.
How Does the Business Services Bond Work?
The process starts when an item or money goes missing from a customer's residence or office during a period of time when an employee of the hired company was on the premise. The customer will hold the hired company at fault. Like any crime, a police report must be filed. If the employee is convicted of the crime, a bond payout will be made from the surety company to the customer to recoup the losses up to the limit of the bond.
A conviction is required for there to be any payout from the surety company. This protects against unjustified collection through a false claim.
What is the Risk to the Business Owner
Whether you are a contractor, pest control or appliance repair business owner there is a risk of your employees stealing from your clients. You are liable for the stolen goods and would have to pay the customer directly for their loss. The Business Services Bond would step in and protect your business from financial loss.
The surety company can subrogate against the guilty party, which means they can go after the convicted person to be repaid for the losses. So as long as you are not the one stealing from others you have little to worry about.
Finances aside, there is a reputational risk to the business owner in the case of employee theft. A Business Services Bond will provide your clients' further recourse and hopefully ensure you can get business from that client and those in the social network in the future.