WHAT IS A FIDELITY BOND?

It is a business insurance policy that protects the employer in case of any loss of money or property due to employee dishonesty. It is like a "guarantee" to the employer that the person hired will be an honest worker. The Fidelity Bonds issued under the Federal Bonding Program are insurance policies of the Travelers Property Casualty insurance company. It insures the employer for any type of stealing by theft, forgery, larceny, or embezzlement. It does not cover liability due to poor workmanship, job injuries, or work accidents. This bond is given to the employer free-of-charge, and serves as an incentive to the company to hire a job applicant who is an ex-offender or has some other "risk" factor in their personal background. The employer is then able to get the workers' skills without taking any risk of worker dishonesty on the job.