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Employment Agency Bond

Employment agencies provide a sensitive service: helping job seekers find the best employment opportunities available. It's important that these agencies behave in a lawful and ethical manner, which is why states require these businesses to have an employment agency bond.

What is an Employment Agency Bond?

An employment agency surety bond (a specific type of commercial bond) holds a business financially accountable when it breaches state laws for employment agencies. States put bond requirements like these in place to regulate sensitive industries and protect the interests of the public.

How does an Employment Agency Surety Bond work?

When an employment agency violates state laws in ways that cause damages to the job seekers they serve, anyone affected may file a claim against the employment agency surety bond seeking damages. As long as the claim is valid, the surety company that backs the bond guarantees payment. However, it does not assume the final financial responsibility. That rests entirely on the bonded party - the owner of the employment agency. Since this party triggered the claim, they must also pay for it (by paying the surety company back) without exception.

Who should get an Employment Agency Bond?

Some states - Arizona, California, Texas - require these, but they're not required in all 50 states. Find out if they're required in your state by contacting Viking Bond Service. We can provide you with expert information at no cost, and help you through every step in the bonding process.

Who are the parties involved in an Employment Agency Bond?

All types of surety bond agreements involve three parties:

• Principal - The business owner required to obtain the bond and pay for claims.
• Obligee - The employment agency client seeking employment.
• Surety - The company that issues and backs the surety bond.

How much does an Employment Agency Surety Bond cost?

The cost depends first on the value of the bond, which is set by each state. The value designates the maximum amount a surety will pay to settle claims. The premium (the technical name for the cost) depends on the bond applicant's credit and financial history. Applicants with good credit will pay less, but applicant's with bad credit won't necessarily be denied - at least not through Viking Bond Service. Regardless of credit, the bond cost is a small percentage of the bond value.

How are claims handled for Employment Agency Bond?

In order to determine whether a claim is valid and deserving of settlement, the surety company that will issue payment investigates each claim thoroughly. Then, provided that everything checks out, they settle with the obligee before turning their attention to the principal. Since the surety bond agreement stipulates that the principal is financially responsible for all claims, that person must pay the surety company back the full amount of the claim with interest and fees included.

How to apply for an Employment Agency Bond?

With Viking Bond Service, applying for a surety bond is a quick and easy process that returns a quote within 24 hours. Just complete our online bond applications and, if necessary, turn over any additional documentation the underwriters request. Once you get a quote and pay the premium, the bond activates and satisfies your bond requirement for however long the bond contract stipulates.

Viking Bond Service - A Partner to Your Business

If your business needs an employment agency bond to get off the ground, Viking Bond Service has you covered. Get the information and expertise you need by calling us at 1-888-278-7389 or by using the contact form on this page. You can also get your bond in a day or two. Start the process by completing our online application.