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Q1.
What is bonding?
A1.
Performance bonding’ is liability insurance an employer takes out on one
or more employees who handle money in the organization. The performance
bond generally is for the amount of the organization's total budget
handled during the year. It is called “blanket employee
dishonesty insurance” and covers a business from the theft,
embezzlement, etc., of all employees who handle money in the business.
Q2.
How do you go
about bonding your organization’s treasurer, fiscal agent, and/or money
handlers?
A2.
Performance
bonding is part of a business’ commercial insurance policy and is not a
stand-alone policy. When an organization takes out its other insurance
policy for property, furniture, fire, etc. (commercial insurance policy)
the performance bond is tacked on.
Q3. What
does performance bonding cost?
A3.
Performance
bonding of money handlers varies in amount and cost according to each
business' size and annual budget. When the charter school sets up its insurance programs, ask
for the performance bond to be added to the commercial insurance policy and
then the cost can be determined. This is not expensive.
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