Securing Protection for Your Business

When you hire people to work for your company, you trust them to be honest and have integrity. You may not anticipate any of your employees being dishonest or taking advantage of you or your customers.

However, as a business owner you also know you have to protect yourself against any eventuality including employee dishonesty, fraud, and theft. By investing in a performance guarantee bond, you can have the financial safety net in place if or when your business is sued because of the actions of one or several of your employees.

Having a performance guarantee bond in place can be helpful even before you hire an employee to work for your company. During the vetting and interview process, you can get an idea of how trustworthy that person is. Even if you have reason to believe this person will be a good worker, you still may need to cover your proverbial bases especially if anything in the worker’s past employment history could be construed as suspicious.

While you are in favor of giving people a second chance to prove themselves, you do not want this second chance to come at the expense of your business. Applying for and getting a bond in place now can safeguard your company’s financial well-being if a customer ever decides to file a lawsuit against you directly because the new hire’s actions.

Instead of the lawsuit settlement coming out of your business’s cash flow, it can be drawn against the bond you have for that employee. The bond issuer will pay the settlement and then either cancel your policy or up the premium. Regardless, you avoid having to pay for the judgment out of your own pocket and also avoid having to liquidate assets like your accounts receivable to settle what you owe to the customer.