Fidelity Bonding Program

Sponsored by the Workforce Development Agency, State of Michigan, the Fidelity Bonding Program was created to assist high-risk, but qualified, job seekers who have bona fide offers of employment. Typically, some employers may view ex-offenders, former substance abusers, and other individuals who have questionable backgrounds as high-risk and potentially untrustworthy workers.

What is a Fidelity Bond?

A fidelity bond is a business insurance policy for employers who hire and employ high-risk job seekers. It is purchased to protect employers from any loss of money or property incurred as a result of dishonesty by the high-risk workers.

The Fidelity Bonding Program offers a business insurance policy from the Traveler's Casualty and Surety Company of America; referred to hereafter as TRAVELERS. It protects an employer against dishonest acts of theft, larceny, forgery and embezzlement committed by a bonded employee. A bonded employee is a high-risk 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, with minimal risk, can obtain workers, while 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 issued range from 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 McLaughlin Company

What does the Fidelity Bond cover?

The Fidelity Bond covers job seekers who are considered high-risk due to some factor in their personal background and who have been rejected by a commercial bonding company. Fidelity Bonds provide 100% insurance coverage and have no deductible; the employer is fully protected against losses resulting from employee dishonesty. Bond insurance coverage ranges from $5,000 to $25,000 for a six-month period. As an incentive to hire members of a targeted population, employers receive the bond coverage FREE OF CHARGE for the first six months of employment by the bonded employee. At that time, the employer can extend the bond insurance coverage by contacting The McLaughlin Company or a Michigan Works! Agency (MWA) service center. Bonding coverage after the initial six months continues at the employer’s expense.

What is not covered by the Fidelity Bond?

The Fidelity Bonding Program does not cover the following:

  • Liability due to poor workmanship, job injuries, or work accidents
  • Bail bonds or court bonds for the legal system
  • Contract bonds, performance bonds, or license bonds for the self-employed

See our Fidelity Bonding Program brochure for more information or call 517-335-5858.

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