What Is an Employee Dishonesty Bond?

You may have heard of an employee dishonesty bond, but do you know what it is? Basically, it is a form of insurance protection that covers businesses for losses that they incur due to dishonest or fraudulent acts by specified employees. Although they are called bonds, they are actually insurance policies designed to protect an employer from employee-dishonesty losses.

What Does It Cover?

Employee dishonesty bonds protect businesses from employees who intend to cause the company loss. Businesses are protected from losses of:

  • Company Monies
  • Securities
  • Other Property

What Are the Different Types of Employee Dishonesty Bonds?

There are two main types of employee dishonesty bonds:

First-Party – These fidelity bonds protect companies against intentionally wrongful acts that are committed by employees of that business. Some of the most common forms of these acts include fraud, theft, and forgery.

Third-Party – These types of fidelity bonds protect businesses against intentionally wrongful acts committed by people working for them on a contract basis. These people can include consultants or independent contractors. When it comes to business partnerships, it is actually the responsibility of the business working as a contractor or subcontractor to carry third-party employee dishonesty bond coverage. However, it is typically the other party that requests or requires this coverage.

Comments

Post a Comment

Popular posts from this blog

What You Need to Know About Notary Public Seals

Image
A notary public cannot discharge his or her duties as commissioned without a vital piece of equipment – the seal. We’re going to discuss notary public seals in this blog post from Notary Bonding.  As a notary, you must use this device on every document that you notarize. Combined with your signature, these are critical elements of a notarized file. If the document does not contain your signature or your seal, it may be considered invalid.  Each seal, which can come in the form of an inked stamp or an embosser device, is your exclusive property and cannot be used by anyone else. It’s essential that you keep in mind that you should never stamp a document that you have not notarized. This improper use of your seal may even be illegal in your state.  When stamping a document, be certain to apply the seal in such a way that it can easily be read. Try to avoid typed wording and never stamp over signatures or handwritten content on the paper.  If you wish to discuss this topic further or lea
Read more

Keeping Your Notary Public Records Up to Date

Being a notary public in Texas carries significant responsibilities, including adhering to the state laws regarding personal information updates. Failing to do so leads to legal repercussions and duty disruption. Whether you changed your address or name, fill out the correct form and follow the Texas Secretary of State’s process to ensure it’s completed as soon as possible. Changing Your Name A notary’s name is a fundamental part of their identity. Any discrepancies between the legal name and the name on the notary commission lead to complications during the document signage. To update your name, fill out Form 2305, available on the Texas Secretary of State website, and submit it along with the necessary legal documentation. Upon approval, you’ll receive a new Texas notary commission reflecting your updated name and requesting you to order new official supplies.  Updating Your Address Keeping your address current is essential for receiving notifications and maintaining your notary bo
Read more

How to Become a Notary

Image
Notarization is an official part of some legal processes. From situations like closing on a home loan and vehicle title transfers, Notarization is important for preventing fraud and exploitation. Every day, thousands of Americans rely on a notary public to ensure that their most important legal documents are legitimate and valid, making the notary public a crucial position. The process of how to become a Notary is usually quite simple, and most people have the qualifications to do it—but it is an important position of responsibility that requires the right knowledge and the proper preparation. The specific required qualifications to become a Notary can vary by state. In most states, the qualifications are: Must Be 18 Years of Age or Older Must Be a Legal Resident of the State in Which You Apply Must Not Have Been Convicted of a Felony Some states have additional requirements, like being able to read and write in English. Many states also require notary applicants to take tr
Read more