How to Bond a Bookkeeper

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Bonding workers can protect your business.
Bonding workers can protect your business. (Image: Goodshoot RF/Goodshoot/Getty Images)

The person you hire to be your bookkeeper will have access to sensitive financial data, so it is important to do a thorough background check on that individual before extending a job offer. Even so, that worker could turn out to be less than honest, and your firm could suffer a financial loss as a result. Bonding your bookkeeper gives you a level of protection by shifting the risk from your firm to the insurance company.

Contact the company holding your bond and find out if it is a blanket bond. If you hold a blanket bond, it covers all employees in your firm. When you hire a new bookkeeper, that individual is automatically added to the blanket bond and you do not need to take any further action.

Get the full name, Social Security number and address of the employee hired to be your bookkeeper if that individual is not automatically covered with a blanket bond. Provide this information to the insurance company holding your bond. Some companies allow you to submit this information online, while others require that you submit it through the mail. If you submit your documentation through the mail you should make a copy for your records.

Specify the amount of coverage you want for the bookkeeper. The premiums for these types of bonds are linked to the amount of coverage, so the more coverage you need the more you will pay.

Follow up with the bonding company if you have not received confirmation of the new bond within a week. Provide any additional information required to get your bookkeeper bonded.

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