Employee Bonding


The financial well being of most organizations depends on its employees properly handling the organization's finances and fiscal assets. Currency, deeds, evidences of debt, money, notes, checks, drafts and securities are all examples of financial assets that are routinely handled and processed by employees.

When these assets are mishandled, an organization may not have the financial resources it needs to continue day to day operations. When the mishandling of financial assets involves an employee diverting an organization's financial resources for either direct or indirect personal gain it is usually identified as embezzlement.


The Risk Management Employee Bond program exists to address such matters. In an embezzlement or similar situation, law enforcement is typically involved. The legal process for dealing with such losses is usually time consuming and sometimes involves finances that can not be recovered quickly or at all. An organization in such a situation may be faced with the need for money if it is to continue operations.

For covered claims, the Risk Management Bond program can provide up to $500,000 per loss subject to a $1,000 deductible. This insurance renews annually, is based on the number of employees and is available for all departments of state government.

If your organization suspects or discovers that its finances are being diverted for personal gain (embezzled), the Office of the Attorney General, Investigation Unit should be contacted. Their phone number is 626-8520. You can learn more about this unit in Maine law Title 5 section 200-C. After contacting the Attorney General's office, please be sure to contact Risk Management so that a claim can be established and assistance provided.

Please note that financial assets are not insured for loss by natural perils such as fire, water damage or windstorm and are not insured for theft or burglary. All state government organizations have available to them the ability to deposit financial assets before they become significant and thereby eliminate these risks of loss. If you have questions about direct deposit or minimizing the accumulation of financial assets you can contact the Department of Audit at 624-6250 or visit their website at http://www.maine.gov/audit/index.htm .