What Does Bonded Mean on a Job Application

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What Does Bonded Mean on a Job Application?

Certain roles in a company may require that you be bonded in order to fulfill your responsibilities. However, for those who are applying to the position, it may be confusing to try and understand what this means and what it requires. What does it mean to be bonded, anyway? Read on to find out.

What is Bonding?

Bonding, in the professional world, is getting a form of insurance for yourself that protrcts the employer and company you work for. It protects the business owner from harm, including issues of theft and can also compensate them for property loss. Certain positions bring greater risk of things like this happening, so a cautious employer may require that employees in this role are bonded.

Why Should Positions Be Bonded?

As mentioned previously, bonding protects employers from financial loss and protects the company’s assets. Every employer wants to protect themselves, as well as protect the wellbeing of their other employees, who could be affected by such internal theft if the company were to take a hit. If an employee, for example, committed a theft of funds, the employer would be able to file a claim and an investigation would begin. Jobs that involve handling a lot of cash, valuables, or expensive equipment are commonly bonded, as they can be more high risk.

Types of Positions that May Be Bonded

Positions such as accountants or financial managers, where the employee is working with large sums of money, are usually bonded positions. If a position involves handling intellectual property, such as a job in research and development, bonding the employee would be wise. Employees who work in people’s homes should also be bonded. This includes cleaners, plumbers, and electricians. This can also be a great marketing tool for companies, because it assures customers that their home and valuables are in good hands!

Types of Bonds

There is more than one type of bond that you can acquire for a professional situation. However, yoi should follow your employer’s lead, as they have a particular structure to their business and will need you to get a particular type of bond. Most commonly, you would be acquiring a named individual bond.

Named Individual Bond

A named individual bond is typically what you would be looking to get. This is a bond that only covers specific employees, so, in this case, would only cover you specifically. Other employees at the company who need to be bonded would likely be on their own named individual bond policy. A named individual bond also requires a submission of the employee’s information with the signature of a company representative.

Blanket Bond

Depending on the amount of employees who are handling money or valuables and need to be bonded, your employer may opt for a blanket bond instead. A blanket dishonesty bond covers all employees, as opposed to a named few. The decision of a blanket bond over a named individual bond may also depend on the structure and function of the business in question. For example, for a housecleaning business where most employees are entering customers’ homes, a blanket bond might make more sense.

Getting Bonded

As an employee, how do you go about getting bonded for your new position? What exactly is involved? The process is a fairly painless process and follows an easy sequence of steps. Read on to learn how to obtain your bond.

Background Check

Once you receive news that you are being hired, you will want to get bonded as soon as you can. You’ll need to get a note from the employer that states their intent to hire you. Then, you wil bring this to an insurance company that specializes in these sorts of bonds. Your employer may even have one that they recommend. The insurance agency will put you through both a background check and a credit check, which you must pass in order to obtain your bond. If you do pass these, you will have to pay the premium for the bond and you are then bonded and ready to start your new position!

More About Your Bond

Each bond has a maximum value that it will cover, similar to homeowner’s or renter’s insurance. It will cover the cost of any theft or damage of assets, if you are the one who has caused the issue, up to this specified amount. Businessowners can either get bonds for the entire business, or bonds can be taken out per employee or per contractor that works for the business.

Frequently Asked Questions

What does it mean if you are bonded?

If you are bonded, this means that you or your company has obtained a bond. This assures customers that they are protected during the service and transaction, and protects them from harmful and unethical business practices. In the case of hiring, the employer is looking to protect his or her assets from you, the employee.

How do you know if your job is bonded?

Your employer should communicate this to you if you are applying for a position that is bonded. It is your responsibility to get bonded for the job.

What does it mean when an application asks “are you bondable”?

This simply means that the employer is asking whether your background is clean enough to pass the criminal check and the credit check, both of which are necessary to get bonded.

What is a bonded employee?

A bonded employee has a fidelity bond placed on them pursuant to their employment, and this is usually because they act in a role where they could harm the employer-- often financially-- if not acting as they should.

How do I get bonded for a job?

FIrst, you will want to secure a note from the employer stating that they will be hiring you, which you will then submit to an insurance agency that handles bonds such as fidelity bonds. They will run a criminal background check and a credit check to approve you for bonding. If you pass these, you will then need to pay the required premium so that the insurance company activates your bond.