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Protect Against Theft with Fidelity Bonds
While rising inflation creates a number of challenges for businesses, it also can create some pretty serious unexpected personal budget shortfalls for employees. When this happens, there is a risk that employees can pose that is sometimes overlooked by employers, especially by smaller contractors.
As individuals face historically high consumer debt loads including mortgage payments, car payments, credit card bills, etc. combined with the added upward spiral of inflation, some find they simply cannot pay for the essentials along with their regular monthly payments. And as the pressures mount to make ends meet, a few may look for ways to “supplement” their income. An unfortunate result can be an increase in employee fraud or theft from their employer, or even worse, from an employer’s customers. This can be especially so with new hires who may not be fully vetted by companies searching more eagerly for employees during our correspondingly stubborn labor shortage.
Businesses can protect themselves from significant losses due to fraud or theft by employees by purchasing a Fidelity Bond. Issued by an insurance carrier, this bond will reimburse a company, less the deductible, for theft/fraud loss if such an event takes place.
More details on Fidelity Bonds can be provided by the insurance agent that services your business. While you may never need to make a claim on a Fidelity Bond, the relatively small annual cost can prove to be well worth it.