What are Employment Agency Surety Bonds?
Employment Agency Surety Bonds guarantee that these agencies will satisfy the terms agreed to in their contracts with the employers, and operate in accordance with all applicable laws and regulations. These license and permit surety bonds cover individuals harmed by the employment agency’s potential acts of fraud, dishonesty, misstatement, misrepresentation, deceit, unlawful acts, unlawful omissions and failure to fulfill their agreed upon services.
Who is required to have an Employment Agency Surety Bond?
Employment Agency Surety Bonds are required for companies and organizations seeking a license to provide employment placement services to the general public. These agencies bring together citizens seeking permanent or temporary employment opportunities and companies actively looking to hire new employees. Depending on the state you are applying for, an Employment Agency Surety Bond may be referred to as an Employer Service Bond, Employee Leasing Bond, Professional Employer Services Bond or Employee Counseling Service Bond.
Which states require Employment Agency Bonds?
Pacific Surety proudly offers Employment Agency Surety Bonds in the following states:
- New Hampshire
- New Jersey
- New Mexico
- New York
If you do not see your state listed, please contact us, and our knowledgeable underwriters will assist you.
What is the bond amount for Employment Agency Surety Bonds?
Amounts for Employment Agency Surety Bonds vary and are set by the local rules and statutes regulating the industry. Therefore, bond amounts and requirements will fluctuate from bond to bond. Please contact us with specific questions, and our knowledgeable underwriting staff will assist you.
How much does an Employment Agency Surety Bond cost?
Pricing for Employment Agency Surety Bonds varies, and your premium will be based on the following factors:
- State the bond is required in
- Amount of the bond
- Term length of the bond
- Personal credit for all owners with at least a 10% ownership stake in the business
Individuals with good credit can expect to pay 1%-5% of the bond amount. Qualified applicants could pay as little as $500 annually for a $50,000 Employment Agency Surety Bond. To find out how much your bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I get an Employment Agency Surety Bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for Employment Agency Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants, regardless of how bad their credit is. Our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. Applicants with substandard credit can expect to pay 5%-10% of the bond amount in premium. To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.
How are Employment Agency Surety Bonds purchased?
The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7873 and one of our Underwriters will assist you in applying for your bond.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.
How are claims for these Surety Bonds handled?
Unlike insurance, which protects your business, Employment Agency Surety Bonds protect your customers. They guarantee you will provide services to the public in professional and lawful manner.
If you do not comply with the terms of the bond, your customer can file a claim with the surety company for relief. If the claim is valid, the surety will pay up to the penal sum of the bond to resolve the claim. You are then required to reimburse the surety for all monies paid out, including any attorney fees incurred by the surety in the defense of the claim.
Claims can be detrimental to your business. Not only do they cause financial harm, they make it very difficult, if not impossible, to get bonded again.