Peter asked:

What information do I need from a prospective employee, to secure a bond or insurance allowing them to work in a customers" home?

Scott Huntington answered:

Any business should carry Employee Dishonesty Insurance. This would be referred to as Fidelity Bond. Theft by an employee against their Employer can be referred to as First Party Bonding. In your question, you were talking about Employee Dishonesty against a Third Party or one of the Principal's customers. This is referred to as Third Party Bonding. Most insurers would have a specific application in relation to this Fidelity Bond. Basic information that would be required would include

• name and address
• Description of employer's business
• limit of bond required
• type of position and duties
• how long have you held this position
• have you ever been discharged from any situation or been in an arrears or default in previous employment
• are there any judgments or debts against you or other liabilities
• have you ever been self employed
• have you ever been bankrupt or insolvent
• are you engaged in any other business or occupation
• previous employment history
• references

There could also be an application that would have to be signed by the applicant which allows for a credit and a consumer report on personal information.

About the author

Scott Huntington is the President and Manager of the Commercial Lines Department of Macleod-Lorway Financial Group in Sydney, Nova Scotia. You can find him at www.macleod-lorway.com or through email at scott@macleod-lorway.com.

 
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