What Does Bonded Mean on a Job Application?
Bonding is very much like insurance; but rather than insuring you against a loss, it is insuring another person against a loss caused by you. There are hundreds of different types of bonds, but the primary factor in each one is the idea of protecting someone against a loss caused by another.
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Bonds as a Condition of Employment
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If employees will be dealing with valuable property, an employer might require that they are bonded. This will protect the employer from loss resulting from an employee acting either willfully or negligently. For instance, if an employee handles a lot of cash, the employer may require that the employee be bonded to protect the employer from loss due to theft.
Fidelity Bonds
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If there is a risk of embezzlement or theft of parts, tools or other valuables, the type of coverage is called a fidelity bond, basically insuring the integrity, honesty or fidelity of the employee. Often, bonding companies perform extensive investigations of employees before they are willing to undertake the risk of issuing a large fidelity bond.
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Surety Bonds
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A surety bond is slightly different. Surety bonds are often required by someone who is having work done to guarantee that the work will be performed properly and on time. Government agencies often require a surety bond from a contractor before allowing him to bid on a contract. The surety bond guarantees the government that if the project is not completed, the bond company will ensure that it is completed at the specified cost. The rate the contractor pays for the coverage is based on the contractor's ability, resources and even intangibles such as tenacity, as determined by the surety bond company.
Bond Questions on an Employment Application
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Depending on the industry and the type of work for which you are applying, there might be several different types of questions regarding bonding on the application. If you will be handling money, the application might ask if you have ever been bonded (which would make it easier for them to have you bonded again). Or, the application may ask if you are currently bonded. It may even ask if you are bondable. You might not be bondable if you have ever been convicted of any type of fraud in the past. If you are applying for a contract position, the question may be whether you have a bond to cover the company should you cause any damage or other type of loss.
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References
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