Bonds by definition a three-party agreement that legally binds together a principal who needs the bond, an obligee who requires the bond and a surety company that sells the bond. The bond guarantees the principal will act in accordance with certain laws or contract requirements. There are several different types of bonds that cover a variety of things. Contractors need license and permit bonds, bid bonds that turn into performance and payment bonds. There are also employee dishonesty bonds that protect protects your business from dishonest acts by your employees. This includes protection against fraud, embezzlement, forging checks, stealing money or merchandise, and so forth.
An Employee Dishonesty Bond does not cover against your employees stealing from your customers. There is a bond for that it is called a janitorial bond.
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