Who is Eligible for Bond Coverage?

To be eligible for fidelity bonding, workers for any employer in the state of Michigan must be paid wages from which it deducts federal income taxes. Workers must also meet the legal working age requirement. Self-employed individuals are not eligible for this bond.

The Fidelity Bond Insurance is FREE OF CHARGE; it expires after six months of employment. However, the employer may purchase continued coverage from The McLaughlin Company at competitive rates.

To be eligible for fidelity bonding, job seekers must:

• Be considered a high-risk by the employer
• Be qualified for the position they are seeking
• Meet the applicable working age requirement under Michigan labor laws
• Be hired in a position paying wages from which federal income taxes are automatically withheld
• Have previously been denied commercial bonding

Individuals who do not qualify for the bonding program include the following:

• Self-employed persons
• Independent contractors
• Employees who do not have federal income taxes withheld from their paycheck 

How Are Fidelity Bonds Obtained?