What Is a Business Services Bond?
Business services bond is a type of surety bond that is meant to cover business in the event that involves an employee theft. Business service bond is crucial for any company who has employees on the job at customer locales.
Such type of bond is not always required by regulatory bodies. Best thing about Business services bond is that they are slightly easy to obtain and comparatively inexpensive. Not only these bonds offer financial security from employees misbehaving on the work, but also reassure customers that you have investigated your employees.
How Does Business Services Bond Work?
While business services bond is equally beneficial to your customers and your business, your company can still be responsible in a situation where there is a valid claim made against the bond.
If a customer suffers with any misconduct by your business, they will file a claim against your bond. To do so, they tend to contact your surety bond company. The bond company will then notify you to resolve the issue swiftly. In case you don't want to sort out the assertion, bond company will start investigation on its own to know whether the claim placed is valid or not. If they find you liable, then they will pay the claim. If it occurs, you will be repay the bond company.