How to Get Bonded

There are two kinds of insurance bonds: fidelity bonds and surety bonds. These types of bonds are really a type of insurance protection. Fidelity bonds are used primarily by employers who want to protect themselves from workplace crime. Obtaining bonds on employees in positions that handle large sums of money requires their fingerprints and a thorough professional background check. Other fidelity bonds for non-fiduciary jobs may be issued automatically. Surety bonds are three-party agreements that are issued either for commercial purposes or contract performance purposes and are purchased by the business from the insurance company to provide protection to the customer.

Difficulty:

Moderate

Instructions

1. Contact an insurance broker that specializes in fidelity or surety bonds, depending on which your company needs. If you are an individual who has been deemed not bondable, contact the Federal Bonding Program at www.bonds4jobs.com.

2. Fill out completely the bond application with all information requested. Leaving out information will likely have your bond application denied, as will incorrect information.

3. Check with your insurance broker or bonding company to follow up on the progress of your application. If there is a point of question, you can speed up the process through proactive communication. Insurance companies are large bureaucratic organizations, and your application might just be sitting in the intake box of someone who is out on vacation.

Tips & Warnings

• The Federal Government, through the Department of Labor, offers federally issued bonds on people who have criminal records, poor credit, no past work history or otherwise can’t be commercially bonded. This program was instituted to help people who can’t get jobs because insurance companies won’t bond them.

• Bonding, whether you are applying for your company or are an individual who must be bonded for a particular job, requires considerable information. Prepare to provide full information on your company finances, taxes, managers, board members and customers. If you are an individual, prepare to be fingerprinted, drug tested, and required to supply passport, Social Security card, driver’s license and background information for yourself and your spouse. Not all this information is always required, but have it handy just in case.

References

• J.W. Surety Bonds: How To Get Licensed & Bonded
• J.W. Surety Bonds: Getting Bonded
• Entrepreneur: Bonding
• Entrepreneur: What's All the Noise About Surety Bonding?

Resources

• Federal Bonding Program Information