Fidelity Bonding: Insurance for Your Employees
What is a Fidelity Bond?
A fidelity bond protects employers against employee dishonesty, theft or embezzlement.
A fidelity bond is no-cost insurance coverage that enables employers to hire job applicants considered to be an employment risk.
Who is Eligible?
Bonding assistance is available to people who have a firm offer of full-time work and any of the following backgrounds:
- limited work history
- poor credit history
- a record of arrest, conviction or imprisonment or
- a dishonorable military discharge
Note: Self-employed individuals are not eligible for the program.
Applying is Easy
The application process is simple and quick. Employers are not required to fill out forms.
- Employers request fidelity bonding by calling the State Bonding Coordinator at (312) 793-2913 or a nearby IDES office. To identify a nearby office, log on to www.ides.illinois.gov/myoffice.
- If an applicant meets eligibility criteria and sucessfuly certifies, bonding becomes effective on the applicant's first day of work.
- Upon certification, the coverage provider mails the bond directly to the employer.
An employee can be bonded for at least $5,000 depending on the person's job responsibilities. Coverage usually begins on the new employee's first day of work. The bond initially covers a six-month period. After that time, if a bond still remains a condition of employment, employers can renew the bond for an additional six months (only one renewal per bond issued) or purchase the bond from the coverage provider at a regular commercial rate.
Since the program's inception in 1966, more than 40,000 bonds have been issued with a 99 percent success rate. Also, employers who use fidelity bonding insurance have the added benefit of turning unemployed applicants into taxpaying workers.
Note: The information contained in this publication is subject to change at any time. For the latest information, visit the IDES website at: www.ides.illinois.gov.
For More Information on Fidelity Bonding:
Additional information on the Fidelity Bonding program is available at IDES offices. Bonding coordinators are available to help employers match the amount of bond coverage to the requirements of the position. Visit www.ides.illinois.gov/myoffice to identify a nearby IDES office.
For More Information on Employment Services:
Fidelity Bonding is one of many IDES programs that help Illinois businesses save money while meeting their staffing needs. To find out how IDES can help you with recruitment, tax credits and other employment services, visit the IDES website at www.ides.illinois.gov or call (312) 793-2913.