Businesses that send employees on client premises face unique risks, and among those risks is employee dishonesty. Whether you’re a contractor, home health care service, or pet sitter, employees who enter a client’s property have access to valuable personal effects, making fraudulent behavior a real risk. To protect the business and clients from financial loss, Old Republic Surety’s Business Services Bond provides essential coverage.
Protection from employee dishonesty
Our Business Services Bond covers losses resulting from employee dishonesty. In this context, the definition of “employee dishonesty” refers to any fraudulent or dishonest occurrences that cause a loss. If an employee steals cash, jewelry, electronics or other personal property while on a client’s premises, the bond ensures that the client can recover their losses. This coverage offers peace of mind to businesses and their clients, knowing that if theft occurs, the business isn’t left shouldering the financial burden alone.
The way it works is simple. For example, if a cleaning service employee takes a valuable watch from a client’s home, the client can file a claim on the bond. Once the claim is approved, the client is compensated for the stolen property. Note that in most states, the employee must be convicted for the bond to apply, but in North Carolina, coverage is triggered upon indictment.
Gaining a competitive edge
A Business Services Bond also serves as a marketing tool that can give businesses a competitive edge. By displaying that they are “licensed and bonded,” businesses show that they take extra steps to safeguard their clients. Even if a customer doesn’t fully understand what “bonded” means, it signals that the business prioritizes security and accountability, making them a more attractive option.
Tailored coverage
Contractors, exterminators, home healthcare workers and pet sitters are just a few examples of industries that can benefit from a Business Services Bond. The bond covers losses from small, easy-to-steal items, such as cash, credit cards, jewelry and electronics.
Bond limits range from $2,500 to $250,000, allowing businesses to choose coverage that aligns with the potential risk they face. Agents can work with business owners to determine the appropriate bond amount based on the value of the client’s property and the nature of the work being done.
BONDSTAR™: Simplifying the process
Getting a Business Services Bond through Old Republic Surety is made easy with our BONDSTAR platform. Agents can quickly enter the necessary information and unless flagged for additional review, the bond can be issued instantly, and the agent can print it out immediately. Even when additional review is required, the bond can still be approved and delivered efficiently, streamlining the process for both agents and business owners.
Competitive pricing and flexible terms
Straightforward and competitively priced, an Old Republic Surety Business Services Bond also offers businesses the flexibility to choose between a one-year or three-year bond term (with the three-year option offering a discount for prepayment). Thanks to this flexibility, businesses can find a solution that fits both their coverage needs and their budget.
The clear nature of the bond sets it apart from more complicated products on the market, giving businesses the ease-of-mind of knowing they are protected without worrying about confusing terms or hidden causes.
Obtaining a Business Services Bond is a smart investment for businesses looking to protect both their reputation and their clients’ property. This coverage not only shields businesses from financial liability, but also offers a valuable marketing advantage. Ask your agent today about this vital protection.
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