Getting employees bonded for a job is a way for employers to protect themselves against losses from misuse or theft of funds and for businesses to assure their customers that contracts will be fulfilled properly. It is similar to an insurance policy, in that a certain amount of money is paid for a required amount of coverage. There are many different kinds of bonds for different kinds of industries. For employment, however, what is usually required is a fidelity bond for employees that handle cash and other kinds of funds. A surety bond for business guarantees that work done under contract will be performed correctly.

Contact your insurance company. Most insurance agencies handle surety and fidelity bonds for employers and businesses. If they do not, they will be able to put you in touch with a company that does this kind of insuring. It is a good idea to do some comparison shopping for rates.

Calculate how much coverage you will need. If your business handles a great deal of cash or checks, and employees routinely handle these funds, decide how much money is likely to be at risk. This will be the amount of the bond, and you will have to pay a premium for the coverage of the amount.

Fill out the applications. You will have to give information about your business, its operations and how much money the business handles. The insurance company will perform a credit check on the business's background. Bond on employees for handling money will require that they fill out applications and undergo criminal background checks.

Receive your bond company’s determination. If there is a considerable amount of money at risk, the rate to cover this loss may be considerable. You may wish to reconsider hiring an employee whose background check reveals problems.

Pay your premium Fidelity bonds are usually offered for the first 6 months of employment. After that time, you may wish to continue coverage, or you may feel that the employee has proven his good faith on the job.

Get a surety bond for business. A surety bond is a good way to reassure customers that work under contract will be done to their satisfaction. Evaluation for a surety bond looks at the business’s record of performance, honesty, management and stability. A surety bond company will not give coverage for a business that does not have these qualities, and therefore, customers and clients are more likely to feel comfortable doing business with them.


Some state governments offer surety and fidelity bonds as incentives to hire employees with criminal records or substance abuse histories. Research your state to see if these bonds are available.

The Small Business Administration also offers surety bonds for small business.