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What is Bonding?

Bonding is the practice of employers becoming insured with guaranteed payment just in case an employee’s actions cause unforeseen financial loss. Some of the most common examples include being able to recover lost money or property because of employee theft, larceny or forgery, and the most common fields where employees are bonded are in janitorial/maid services, accounting and financial services, and security services. But in very general terms, you’re “bondable” if you’ve got no criminal record and are of minimum age.

I’m an Employer. What Kind of Bonding Options Do I Have?

There are four main types of fidelity—or surety—bonds employers can get, and you should go over it with an insurance agent to make sure you’re protected in the most-suited way:

  • Individual: This bond covers only one person, and is frequently used by employers who contract out their services or who operate small businesses with just one employee.
  • Blanket: Opposite to individual, blanket fidelity bonds cover all employees.
  • Schedule: When you want to bond employees in various positions (e.g. office managers, bookkeepers, etc.), schedule bonds cover employees based on name/position.
  • Commercial Blanket: Just like blanket bonds, commercial blanket bonds do cover all employees, but tend to include multiple protection and can be used to claim the same amount regardless of how many employees were involved in the loss of money or property.

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