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Business Services Bond

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Business Services Bond Information

A business services bond, can also be known as a fidelity bond. This can often make things confusing for some businesses to know which of the two bonds is best for them to purchase.

Whilst a fidelity bond is issued to protect against loss of money due to employees who steal from the company, a business services bond is issued to protect a company whose employees work off site and instead work in the environment of a client. As with a fidelity bond, a business services bond can be easily obtained and at a reasonable cost to the business requesting it.

It is largely those who are landscapers, locksmiths, painters, plumbers, pet-sitters and janitors amongst other such companies who tend to have a business services bond in place. The bond acts as protection against liability should an employee be responsible for damages, breakages or theft of any kind whilst working at the site of a client. These client sites include residential properties, schools, hospitals and hotels or office blocks.

Any bond such as this, is a legally written contract between the employer, employee and issuing company. The bonds act as an insurance policy to ensure that the business is covered against deceitful acts from its employees. The business services bond can also act as a guarantee. It ensures current and potential customers a firm has carried out necessary background checks of its employees prior to hiring them. This bond is also proof that sufficient guards are in place should something untoward occur.

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