How to Buy Janitorial Fidelity Bonding
Employee theft can cripple a business, even if the employee who is doing the stealing is just a janitor. A good, law-abiding janitor is hard to find. For this reason, an area of insurance coverage called surety bonding has been created. These "fidelity bonds" help to alleviate the potential for loss from dishonest employees. If you choose to buy a janitorial fidelity bond, you should be aware of certain considerations before making this investment, including the fact that a criminal charge must be filed against any janitor in question before you can collect a payout on this bond.
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Instructions
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Impose stringent hiring policies. In order to curtail the need of this sort of surety bonding, you may prefer to implement selective hiring practices. Although finding a pool of qualified applicants may be challenging, if you hire hardworking and trustworthy individuals, your turnover rate is less likely to be a cause for concern. By becoming an expert at interviewing job candidates, you can save yourself worry and money down the road.
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Perform a cost-benefit analysis for implementing this security measure within your organization. Although the cost of a janitorial fidelity bond is low, you may find that alternative measures will more effectively meet your needs. Consider installing security cameras, hiring a security guard or creating a night shift that you can staff with employees who sport a proven record of reliability.
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Be aware that coverage will not apply unless your employee receives a criminal conviction. Unfortunately, even if an employee steals, if you have no proof of the employee theft, there will be no payout on this fidelity bond. Without a criminal charge, your business lacks protection. Thus, you will need to monitor your employees with the eagle eye of a private investigator in order to gain a benefit from your investment. Furthermore, you must also be willing to await the results of the judicial process.
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Determine the term of the bond. Consider the person who you will be hiring. Will he be the sort who will plug away for years in his position, or does he have a more transient attitude toward his employment? If he is simply passing through, then you will probably only need a short-term fidelity bond. However, fidelity bonds are not very costly investments, and you can probably increase the term of your coverage for just a few dollars more.
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Select the payout amount of the bond. Consider the items that you are seeking to protect. If you are simply trying to make sure that the break room's vending machine is not looted on a nightly basis, then you may not care to invest in a bond with a high payout. However, if you are trying to protect expensive computer equipment and accessories, a bond with a low payout may be worthless. If you were to lose these precious valuables, how much would you hope to be compensated?
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Tips & Warnings
If you choose to employ an individual from a low-income situation or who has a prison record, learn about the Work Opportunity Tax Credit. This incentive program pays employers to hire qualifying individuals who may otherwise have difficulty in securing work. Perhaps this tax credit will put enough money in your pocket to pay for the janitorial fidelity bond.
Be wary of flashy online companies that are not affiliated with brick-and-mortar establishments. While conducting business over the Internet may be convenient, it may also be deceptive. Before engaging in substantial business transactions, take time to do research beforehand to be sure of who you're dealing with.
