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 1% of those bonds have had claims filed against them.