Federal Bonding Program


Fidelity Bonding is no-cost employee dishonesty 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 bond carriers. Some reasons for denial include workers who:

  • Have a record of arrest, conviction or imprisonment
  • Are economically disadvantaged youth or young adults
  • Have a history of alcohol or drug abuse
  • Have poor credit history
  • Are welfare recipients
  • Have a dishonorable military discharge
  • Lack employment history
  • Are unable to secure employment without being bonded

Is the program successful?
Nationally, more than 40,000 bonds have been issued. Only about one percent of those bonds have had claims filed against them.


The job must be full- or part-time work for which wages are paid with Federal taxes automatically deducted from the paycheck. Self-employment is not covered by the Minnesota Federal Bonding Service.


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.


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, contact the Minnesota Federal Bonding Coordinator to apply for a Fidelity Bond.

To Obtain a Bond in Minnesota, contact:
Minnesota Federal Bonding Coordinator
Phone: 651.259.7521 (Twin Cities area)
Toll Free: 888.234.5521
TTY: 651-296-3900