Federal Fidelity Bonding is no-cost employee dishonesty insurance that protects employers against employee theft of money or property.
Eligible employees must be hired for full- or part-time work for which wages are paid with federal taxes automatically deducted from the paycheck. Self-employment is not covered by the Minnesota Federal Bonding Service.
The Minnesota Federal Bonding Service provides individual Fidelity Bonds to employers for new or current employees who may be denied coverage by commercial bond carriers. Some reasons for denial include workers who:
- Have a record of arrest, conviction or imprisonment
- Are economically disadvantaged youth or young adults
- Have a history of alcohol or drug abuse
- Have poor credit history
- Are welfare recipients
- Have a dishonorable military discharge
- Lack employment history
- Are unable to secure employment without being bonded
The Fidelity Bond is issued as a policy of Travelers Property Casualty. The Minnesota Department of Employment and Economic Development is an authorized agency for the issuance of the bonds.
Employers, not workers, contact the Minnesota Federal Bonding Coordinator to apply for a Fidelity Bond.
To Obtain a Bond in Minnesota
- Call the Minnesota Federal Bonding Coordinator at 651-539-4121.
