Nonprofit organizations make a big difference in many local communities. They work to generate income to further the awareness of a certain cause. However, if your employee embezzles funds, then it can ruin your company’s reputation. Read on to find out how to save your nonprofit business from financial disaster with an employee dishonesty bond.
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Understand Employees Can Participate in Dishonest Activities
If a nonprofit organization wants to offer tutoring services to the community, then they need to raise money for this program. This funding can come from government grants, fundraisers, donations or selling products. However, your employees have access to monies that come from these venues. It becomes a problem with misappropriation of the funds.
Get Insurance Protection
An employee dishonest bond is a type of fidelity surety bond. It protects against any embezzlement, fraud, forgery and theft committed by employees. This type of bond works similar to insurance for a business. It covers money order fraud, forgery, burglary of safe and any type of theft. The point of the coverage is to ensure the safety of your company’s assets.
Cover Your Losses
Taking out this coverage allows a business to bond employees who handle cash. However, this bond does not stop theft and fraud from occurring. If a bonded employee participates in dishonest activities, then your losses are covered by the bond. These types of crimes are not covered under a regular theft policy.
The worse case scenario is getting arrested for the misappropriation of funds. It shows your nonprofit organization in a bad way to your community. Your business can also get a bad reputation. If you have a bad reputation, then the public will not want to support your cause.
This insurance covers you for certain risks, but you have to pay a premium. If a theft occurs in your business that is covered by this policy, then you will get financial compensation. Choosing to get this coverage should not be taken as a lack of trust in your employees, but as a safety options to protect your assets.