How to Get a Fidelity Bond
Businesses face a lot of risk in their marketplace and cannot afford problems such as employee theft or embezzlement. Fidelity bonds allow a business to hire high-risk individuals -- those with a criminal history or previous addiction problems -- without undue financial risk. Some businesses may bond their employees willingly if they work unsupervised on private property. States issue these bonds as a promise of good conduct for the applicant. The bond acts as an insurance against theft or embezzlement for the duration of employment. Either the hiring company or the applicant may file for a fidelity bond.
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Instructions
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Contact a local job center to begin the bonding process. The local Department of Labor can assist with finding job centers or similar organizations as the issuing insurance agency, and forms vary by state. The U.S. Department of Labor website provides a contact list of state offices, including telephone numbers, addresses and websites.
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Fill out the Fidelity Bond Certification Form. This form requires personal information on the applicant and the business information of the hiring agency.
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Obtain the completed certification from the local job center. The issuing agency sends these forms directly to the job center. Employers or applicants then may pick up the bond certificate at any time.
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Store the bond certificate as a confidential business document. The certificate insures the company against theft or misconduct in the amount of the bond. The coverage varies by state and applicant.
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Tips & Warnings
Hiring employees with previous criminal or addiction histories may also entitle the business to additional tax deductions or credits. Check with local tax centers or Departments of Labor for more information on these incentives.
