As a business owner, you count on your employees to act with integrity and honesty while on the clock. They represent you and your company during the time they are working for you. Their actions and words reflect on you as the company owner as well as the company’s reputation as a whole.
When one or several of them engage in fraudulent activities that victimize your customers, you will be the one held legally and financially liable. You can protect your business’s finances as well as its reputation by hiring a corporate lawyer, taking out property insurance, and securing an employee dishonesty bond today.
Escaping Significant Financial Losses
When your customers realize they have been defrauded by one of your employees, the first action they will typically take involves suing you and your company. They may have no legal recourse against the employee at your company. He or she may be protected by the employment contract you offered at the time of this person’s hiring.
Even if they can sue the employee, customers will still take action against you and your business. After all, you are the person who put this person on the payroll. This person’s actions are ultimately your responsibility during the time he or she is working for you.
Facing a lawsuit can be a daunting prospect especially when your net worth is tied up in the value of your business. If you lose the lawsuit, you could face financial ruin and having to go out of business entirely. However, the bond you took out on your employee can be used to recoup the losses you may face in a lawsuit.
Employee bonds can be worthwhile investments even if your company is worth millions. You do not want to face paying out of your own pocket for actions the employees took against you and your business. The bonds act as an insurance of sorts that you can cash out if or when needed.
You can find out more about employee bonds online. You can also apply for and take them out on the website.