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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. 

An innovative activity that serves as a tool to secure the job placement of ex-offenders and other high-risk applicants. The program, sponsored by the U.S Department of Labor, issues Fidelity Bonds. 

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. It is not a bail bond or court bond for the legal system. It is not a contract bond, performance bond, or license bond sometimes needed to be self-employed.

The bond is given to the employer at no cost, 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 worker's skills without taking any risk of worker dishonesty on the job. 

The worker must meet the state's legal age for working; there are no age limits. The job usually is to be for at least 30 hours work per week. Workers must be paid wages with Federal taxes automatically deducted from pay; self-employed persons cannot be covered. 

A total of $5,000 bond coverage is usually issued, with no deductible amount of liability for the employer. Larger bond amounts can possibly be issued if the certified agency issuing the bonds has acquired a special bond package and has determined that larger bond amounts are appropriate. 

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