Dishonesty and Business Service Bonds
What They Are And When You Need Them
Some business owners get confused about what types of bonds their business might need. Two common types are fidelity bonds and business service bonds.
Does your business need one or both types of these bonds? It can be confusing, since both types are sometimes referred to as "fidelity bonds."
Here's a quick guide to help you understand these bonds and help you decide if your business would be wise to get this protection.
Fidelity bonds protect your business from employees who steal from you. Companies usually seek to bond all workers who handle cash, from bookkeepers to retail cashiers.
Business service bonds protect any company that sends its workers out to perform a service at a client site. Types of companies that typically have business service bonds include janitorial companies, landscapers, maid services, carpet cleaners, pool cleaners, painters, locksmiths, movers, pet-sitters, plumbers, exterminators and appliance repair. If your worker breaks something, steals something, or damages a customer's property while they're working at a client site be it a private home, office tower, university or hospital, a business service bond protects your company from liability.
Having bonds also reassures customers that you have done background checks on your workers and have financial guards in place in case anything goes wrong. Both types of bonds are fairly easy to get and relatively inexpensive.