Business Services Bond
What is a business services bond?
A business services (or service) bond offers financial protection for your clients and customers if one of your employees steals from them. Like an insurance policy, the bond also protects you by covering your liability. If an employee steals from a client, you can file a claim on your client’s behalf. This fidelity bond may cover stolen money, property, and securities.
Here’s an example. Let’s say you own a window washing company with about 50 employees. Over the months, you have received complaints from various customers about small electronics and jewelry that have gone missing. If you have a business services bond, you can file a claim for your clients to recoup their losses. If you don’t have a bond, you could be personally responsible for the damages.
Get Your Business Services Bond:
Quick Takeaways
- A business services bond offers financial protection for your clients and customers in case one of your employees steals from them.
- This bond is much like an insurance policy, benefiting the policyholder by covering their liability.
- If a customer files a complaint about missing items, the policyholder will file a claim on the customer’s behalf.
- Any business that sends employees to customers’ property to provide services should consider this bond.
How do business service bonds work?
A business service bond is a three-party agreement. The principal is the business that purchases the bond policy. If a customer files a complaint about missing items, the principal will file a claim on the bond on the customer’s behalf. The surety will then investigate to verify the claim’s legitimacy. If it’s valid, they will compensate the customer for the value of their stolen items.
Who needs a business services bond?
While this type of bond isn’t required, it can offer the protection you need to build trust with customers and protect your reputation. More customers may feel comfortable working with your business if it’s bonded. It can also set you apart from competitors.
Any business that sends employees out to customers’ property to provide services should consider this bond. Some examples include painters, landscapers, cleaners, subcontractors, moving companies, and childcare services.
Frequently Asked Questions
Employee Dishonesty Bonds vs. Business Service Bonds
A business service bond is commonly confused with an employee dishonesty bond, but they are distinctly different. A business service bond protects a company’s clients from employee theft. An employee dishonesty bond protects the company itself from employee and non-employee theft.
How much does a business service bond cost?
The cost of your bond will depend on how much coverage you need. You will pay a small percentage of the full bond amount as your premium. Contact ZipBonds for more specific pricing information by calling 888-435-4191.
Get a Business Services Bond in Your State
The experts at ZipBonds can help you obtain the bond you need. To connect with one of our team members, please give us a call at 888-435-4191 or email us at support@zipbonds.com. We’ll walk you through the process for fidelity bonds to help you get bonded in a flash.
About ZipBonds.com
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.