Sometimes employers are reluctant to hire workers they view as risky. Those workers tend to present some current or past concern that gives an employer cause to question their credibility or honesty.
For example, employers might be concerned about hiring workers who:
Fidelity Bonding offers some assurance to employers who would like to take the risk out of hiring. It is no-cost employee insurance that protects employers against employee theft of money or property.
The Minnesota Federal Bonding Service provides individual Fidelity Bonds to employers for new or current employees who may be denied coverage by commercial carriers.
Employers, not job seekers, apply for these bonds. However, it is useful for job seekers to know about the program, since they can bring the bonds to the attention of a potential employer.
Nationally, more than 40,000 bonds have been issued. Only about 1 percent of those bonds have had claims filed against them.
Fidelity Bonding may be provided for any individual who has a job offer with a date set to start work and is an at-risk, new or current employee whose background tends to cast doubt upon their employability. Fidelity Bond coverage for current employees is effective when the Minnesota Federal Bonding coordinator certifies the bond.
To qualify, the job or job offer must be full- or part-time work for which wages are paid with federal taxes automatically deducted from the paycheck. Bonds are not available for the self-employed.
The Fidelity Bond is issued as a policy of Travelers Property Casualty. The Minnesota Department of Employment and Economic Development is an authorized agency for the issuance of the bonds.
Employers, not workers, apply for the bond through the Minnesota Federal Bonding Coordinator.
The Fidelity Bond has a "no deductible" amount. The amount of insurance is usually issued at $5,000. Travelers Property Casualty send the fidelity bond directly to the employer.
The duration of the Fidelity Bond is six months. If the employer makes no claim against the bond during that period, Travelers Property Casualty will make a standard commercial policy available for the employer to purchase.
To obtain a bond in Minnesota, contact:
Minnesota Federal Bonding Coordinator
Phone: 651.259.7500 (Twin Cities area)
Toll Free: 800.345.2537