A fidelity bond is a form of business insurance. It is usually purchased to protect employers from any loss of money or property incurred as a result of hiring high-risk job seekers.

The DLEG Bureau of Workforce Programs Fidelity Bonding Program offers a business insurance policy from the Traveler’s Property Casualty Insurance Company. It protects an employer against employee theft, larceny, or embezzlement committed by a covered employee. A covered employee is any worker who is currently bonded by the Fidelity Bonding Program.

The bonds issued by the Fidelity Bonding Program offer the employer a guarantee against losses up to $25,000 in value that are incurred as a result of hiring a high-risk job seeker. The fidelity bond serves as an incentive to encourage employers to hire job seekers who might otherwise be denied employment. Employers can, with minimal risk obtain workers, and job seekers can find gainful employment.

How does the fidelity bond work?

• Bond coverage is based on the value of the property at risk
• Bonds are issued in the amounts of $5,000 to $25,000, in increments of $5,000
• Bond insurance carries no deductible amounts
• Bond insurance becomes effective on the employee's first day of employment
• The fidelity bond is mailed directly to the employer
• Bond insurance expires after six months. However, the employer may purchase continued coverage from the The McLaughlin Company

What Does the Fidelity Bond Cover?