Business Services Bond

Business services bonds are the most common form of the broader category of fidelity bonds, providing protection should an employee steal from the customer’s of the business purchasing the bonds (the “insured”). Business services bonds are often referred to as “dishonesty” or “employee dishonesty bonds”; however, it’s important to distinguish the coverage offered by a business services bond versus a traditional employee dishonesty bond. Business services bonds cover loss resulting from theft of the insured’s customer’s property by an employee while on the client’s premises. Employee dishonesty bonds cover loss resulting from theft of the insured’s property by an employee and may also include the same coverage provided by a business services bond along with other available coverages.

Business services bonds are most often needed for businesses that perform services on their customer’s premises. Janitorial services companies, handyman construction services and in-home medical providers are the most common business types that require a bond.