Employers may view ex-offenders and other at-risk job seekers as potentially untrustworthy workers, and thereby deny them employment.
Insurance companies may not cover risky job applicants under commercial crime insurance (also referred to as a fidelity bond) purchased by employers to protect themselves against employee dishonesty.
Anyone who has ever “committed a fraudulent or dishonest act” is often deemed NOT BONDABLE by insurance companies, a situation leading to routine denial of employment opportunities for such persons
Being NOT BONDABLE is a significant barrier to employment possessed by the hardest-to-place job applicants. This barrier can be eliminated by The Federal Bonding Program
Persons who are NOT BONDABLE can ultimately become commercially BONDABLE by demonstrating job honesty during the 6 months of bond coverage under the Federal Bonding Program. Subject to underwriting, a quotation for such commercial insurance inclusive of demonstrated honest Federal Bonding Program participants will be made available for purchase by the employer. Such coverage will be provided by Westchester Fire Insurance Company, a subsidiary of Chubb Ltd.
At-risk job applicants eligible for bonding services, include: justice-involved individuals, recovering substance abusers (alcohol or drugs), welfare recipients and other persons having poor financial credit, economically disadvantaged youth and adults who lack a work history, individuals dishonorably discharged from the military, and others. Self-employed persons are NOT ELIGIBLE for bonding services. Bond Principals must be an employee who earns wages with Federal taxes automatically deducted from paycheck.
Anyone who cannot secure employment without bonding against acts of fraud or dishonesty.
All persons bonded must meet the legal working age set by the State in which the job exists.
While the bonds are intended to help secure a job hire, bonds can be issued to cover already employed workers who need bonding in order to (a) prevent being laid off, or (b) secure a transfer or promotion to a new job at the company.
Bonding coverage can apply to any job at any employer in any State.
How Can Bonds Be Accessed Under the Federal Bonding Program?
Any organization is now eligible to deliver bonding services under The Federal Bonding Program, but organizations issuing Fidelity Bonds must be “certified” to do so by The Federal Bonding Program.
Fidelity bonds issued to employers covering at-risk applicants are made available exclusively to The Federal Bonding Program by Chubb which is not duplicated by any other Federal or State program.
Issued bonds are become effective the day that the applicant is scheduled to start work. The bonds are self-terminating after 6 months with no termination paperwork needed, and the employer does not sign any papers in order to receive the bond free-of-charge.
Bonds may be issued with values ranging from $5,000 to $25,000 in coverage for a 6-month period with no deductible, providing the employer 100% insurance coverage for covered loss up to the value of the bond. When this bond coverage expires, continued bond coverage can be purchased from Chubb by the employer if the worker demonstrated job honesty under coverage provided by The Federal Bonding Program
The bond can be issued to the employer as soon as the applicant has a job offer with a date scheduled to start work