What Does “Bondable” Mean on Job Applications?

Employers ask if you are bondable to cover their company with fidelity bonds, an insuring mechanism that guarantees repayment of losses in case of fraud or theft.

You are considered “bondable” if you meet the requirements to pass a surety company’s background check.

The Conditions to Be Considered Bondable

Insurance companies look at the two following factors to determine if a candidate can be bonded:

• A clean criminal record. Criminal offenses can be a drawback to being considered bondable, especially if you have been convicted of financial crimes, such as embezzlement, fraud, or theft.
• A healthy credit history. If you have a low credit score, regularly miss payments, or do not pay taxes, financial institutions might deem you untrustworthy, and you will not be bondable.

Insurance companies have the choice to accept or refuse to bond a candidate without any justifications.

However, you are likely to be bondable if you have not perpetrated a criminal offense and have a good financial history.

Why Employers Ask if You Are Bondable

During the hiring process, recruiters ensure that they do not put the company at risk by hiring unbondable employees.

Here’s why employers care if you are bondable or not:

• Unbondable employees are more expensive. If you are not bondable, your employer will need to purchase bonds for “risky employees.” These bonds are more expensive and might have limited coverage.
• Being bonded protects both the company and its clients. If a client pays a company to provide a service and it fails due to a bonded employee, the bond may be used to reimburse clients.

Common Industries That Require Employees To Be Bondable

Not all sectors require an employee to be bondable. However, the following sectors are some of the industries that require surety bonds:

• Motor vehicle dealers are required to buy surety bonds. Being bonded protects the company and clients from an employee misrepresenting a vehicle to a client, failing to record the sale of motor vehicles, failing to issue a valid title certificate, or any other related incidents.
• Insurance workers are required to be bonded. Employees need to be bondable since these companies handle sensitive and privileged information. The company needs to trust that its employees will not steal or leak any sensitive information.
• Construction workers might be required to be bonded. If the construction company does not complete construction, the surety company will reimburse the client.
• Bankers are required to be bonded. Potential employees must be bondable to reduce the risk of financial crimes, mainly since financial institutions handle a massive amount of cash and have access to clients’ personal information.
• Cleaners might need to be bonded. A company providing cleaning or janitorial services needs to be sure that its employees are bondable to limit the risk of an employee stealing property from a client.

The Bottom Line

Being bondable is becoming an increasingly important key sector to mitigate the risk of clients losing money.

It also lessens the burden on businesses to reimburse surety companies after successful claims.

If you have a criminal record, especially if you have been convicted of a financial crime in the past, you will probably not be deemed bondable.

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About The Author

Nathan Brunner is a labor market expert.

He is the owner of Salarship, a job board where less-skilled candidates can find accessible employment opportunities.