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The Federal Bonding Program is an incentive program that allows employers to hire at-risk job applicants with limited liability to their business. A Federal Fidelity Bond, supplied by Union Insurance Group (UIG), is a business insurance policy, that insures the employer for theft, forgery, larceny or embezzlement by the bonded employee.
The bond does not cover liability due to poor workmanship, job injuries or work accidents. The Federal Bonding Program does not provide bail bonds or court bonds for the legal system nor contract bonds, performance bonds or license bonds that are sometimes needed for self-employment.
All employers are eligible for bonding services. Bonds can be issued as soon as the applicant has a job offer and a scheduled start date. Jobseekers and employers seeking a federal bond must contact the nearest career center to begin the process for obtaining a bond.
Bonds are in units of $5,000 and provide coverage for a six-month period at no cost to the applicant or the employer. One unit of bond insurace coverage is usually sufficient to cover most job applicants.
When the initial bond coverage expires, the employer may request an additional six months of coverage, should the employee have demonstrated job honesty. Additionally, the employer may purchase continued coverage at their own expense.
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