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Employee Dishonesty: A Widespread Problem

Employee Dishonesty: A Widespread Problem

Did you know that an average of $10.1 billion per day is lost to employee theft? How about the fact that one-third of all business bankruptcies can be traced directly back to employee theft? Employee dishonesty is a widespread problem and Merchants Bonding Company has an excellent product to protect your clients (and their clients) from this increasingly disruptive issue. 


Merchants’ fidelity/employee dishonesty bond is Theft Guard. Our Theft Guard product is broken into 3 different forms, each for a specific area of business. The three products are similar but coverage slightly differs to cater to the specific business type. 


Theft Guard Standard 

Theft Guard Standard covers the majority of business types such as house-to-house sales, home health care, and retail, among others. Theft Guard Standard offers dishonesty coverage for an employee stealing from an employer, as well as an employee stealing from a customer or subscriber of the business. This bond contains a conviction clause, meaning a conviction is necessary for a valid bond claim. Bond amounts for Standard range from $5,000 to $100,000. 


Theft Guard Janitorial 

Our Janitorial Services form is strictly for cleaning or janitorial type businesses. It covers subscribers of the business only. It does not provide coverage for employees stealing from the owners of the business. A conviction clause applies. If there have not been recent dishonest losses, agents are able to issue this bond without the request being stopped for underwriting (what we call “instant issue”). Janitorial coverage ranges from $5,000 to $100,000. 


Theft Guard Pro

Theft Guard Pro is designed for professional service businesses. Examples include doctor offices, dentist offices, and law firms. Theft Guard Pro provides coverage for dishonest employees stealing from their employer. Unlike the standard and janitorial forms, Pro does not cover employees stealing from customers/subscribers of the business. Theft Guard Pro also differs from Standard and Janitorial in that it doesn’t contain a conviction clause, only a reasonable proof of loss is required. Pro is written in amounts ranging from $5,000 to $50,000. 


Underwriting/Other Info 

The underwriting for fidelity differs from surety in the focus on the type of business, bond size, and the controls in place to mitigate the chances of a claim. Questions asked may concern recent dishonest losses, the type of business, and controls in place. There is no deductible for any of our Theft Guard bonds and we write this product as blanket position coverage. Premium is based on the bond amount as well as the number of employees covered. 


Theft Guard can keep your clients - and sometimes even more importantly their clients - covered for dishonest acts by employees. If you are interested in more information on this product please reach out to your commercial underwriter or email theftguard@merchantsbonding.com.