Employee Theft (Dishonesty) Bonds

Why work with Surety Bond Direct to Purcahse an Employee Dishonesty Bond?

Surety Bonds Direct is a specialized surety agency. We work exclusively with the nation's best A-rated surety companies to help businesses:

• Get the lowest price for an employee dishonesty bond
• Ensure the bond provides the right amount of coverage for the specific situation

Surety Bonds Direct is fully licensed and authorized, and has worked with tens of thousands of businesses in every state to obtain the lowest priced employee dishonesty bonds for our customers.

What Makes an Employee Dishonesty Bond Unique?

Most surety bonds are purchased by a business owner or business entity to protect their customers from fraud or negligence on behalf of the company or their employees.

An employee dishonesty bond is purchased by a business owner or business entity for the businesses protection against their employees who may commit:

• Financial forgery
• Cyber-theft of digital assets or secrets
• Theft of valuable physical company property
• Issuance of unauthorized money transfers

In the rare case where an employee commits theft of business assets, the employee must be convicted of the crime for the business to make a claim against their bond.

Employee dishonesty bonds are typically purchased by companies who hire:

• Temporary employees
• Seasonal laborers
• Contract employees
• Volunteers
• Board members and trustees

These types of employees generally don't have a long term commitment to the company. Plus the process of hiring these employees is outsourced to hiring firms or temp firms where candidates may not be as closely vetted.

How Much Does an Employee Dishonesty Bond Cost?

Surety Bonds Direct works with multiple A rated sureties who specialize in employee dishonesty bonds and we have secured fixed low prices based on the coverage selected. There is no credit check required in most cases.

The cost of an employee dishonesty bond is determined by:

• The bond coverage amount required
• The number of employees requiring coverage

The most common bond coverage amounts are between $25,000 and $50,000. In most cases businesses that purchase an employee dishonesty bond, cover less than 5 employees.

In rare cases where a business is purchasing coverage for 25 or more employees, a rate may need to be secured to determine the price. This rate is quoted based on primarily the credit of the business owner purchasing the bond.

The rate multiplied by the bond amount is the cost.

The cost of an employee dishonesty bond is a small fraction of the required bond amount.

How Long Does a Dishonesty Bond Last?

An employee dishonesty bond has a bond term of one year. In the case where a business does not require coverage longer than a year, the business would let the bond expire.

If the bond requires renewal for subsequent years, the bond has a renewal cost to keep the bond active. There is no need to have a new bond issued making the renewal process seamless and nearly instant.

Your bond specialist contacts you 30 to 45 days from bond renewal as a reminder. At this time the business can assess their needs.

How Long Does It Take To Purchase a Bond?

Purchasing an employee dishonesty bond in most cases is instant. After a business purchases the bond with their required coverage and number of employees, Surety Bond Direct can issue the bond in one business day.

In the rare case where more than 25 employees require coverage, a quote must be secured to determine the cost. In most cases the quote and bond can still be issued in one business day, but in some cases it will take two business days to receive the bond.

Employee dishonesty bonds are emailed for near instant delivery.

Employee Dishonesty Bond vs Fidelity Bond

An employee dishonesty bond is a type of fidelity bond. A fidelity bond is a type of surety bond requiring the demonstration of good faith and loyalty.

There are many different types of fidelity bonds like:

• Janitorial bonds
• Home care organization bonds
• ERISA bonds
• Moving company bonds
• Pet sitter bonds

Each type of fidelity bond has its own coverage amount guidelines. Some can be instantly purchased without a credit check while others require a credit check to determine the rate that will establish the cost.

Employee Dishonesty Bond vs Business Service Bond

Bonds such as janitorial, caregiver, and moving company bonds are types of fidelity bonds categorized as business service bonds. A business service bond is purchased by an individual or business to protect their customers from their employees stealing while on a customer or clients private property.

Remember, an employee dishonesty bond is purchased by an individual or business to protect the business from their employees stealing from their company.

The parties protected by a fidelity bond is the major difference between an employee dishonesty bond and a business service bond.

There is another type of fidelity bond called an ERISA bond. ERISA - Employee Retirement Securities Act - is a piece of federal legislation requiring individuals who manage employee retirement plans to purchase this bond. An ERISA bond protects the businesses employees from a fund manager who:

• Steal from the fund
• Illegally transfer money from the fund
• Forgery of documents
• Assuming fun duties that create a conflict of interest

Employee Dishonesty Bond vs Business Owners Insurance

An employee dishonesty bond is often confused with business owners insurance. While business owners insurance is also purchased by the business, the protection provided is different.

Business owner insurance typically covers:

• Third party injuries on the business's property
• Third parties causing damage to company property
• Slander or copyright infringement in advertising
• And in some cases it can help pay for theft caused by third parties or natural disaster damage

The key difference is business owner insurance protects against third parties while employee dishonesty coverage protects from the businesses hired employees.

How To Purchase an Employee Dishonesty Bond

In most cases, purchasing an employee dishonesty bond is a fast process. You can purchase and receive your bond within one business day. In rare cases where you're bonding over 25 employees, a rate must be quoted by the surety.

In both cases, Surety Bonds Direct works with multiple sureties to secure the lowest possible pricing for your bond. Click on the price above to purchase your bond and receive it today. You can call a bond specialist at 1-800-608-9950 if you have questions about bond amounts or in the case of a custom quote.