What Are Employment Agency Bonds?
Employment agency bonds guarantee that personnel and staffing agencies will operate according to state laws and regulations. These commercial surety bonds protect the state and the public from harm if an employment agency is fraudulent or breaks employment laws.
We also issue bonds for professional employment agencies, visit our PEO Bond Guide to learn more and apply.
How Much Do Employment Agency Bonds Cost?
Employment agency bond premiums cost a small percentage of the total bond coverage amount, typically 0.5–5%. For example, the $7,500 Connecticut private employment agency bond costs $750 and the $10,000 New York employment agency bond costs $100.
Many employment or staffing agency bonds are available for instant purchase at a flat rate. However, some require underwriting review to determine personalized pricing. Select your state below to find the bond you need and start your online application.
How Do Employment Agency Bonds Work?
Employment agency bonds protect customers by creating a legal agreement between three parties:
- Principal: The staffing agency purchasing the bond
- Obligee: The government entity requiring the bond for licensing
- Surety: The provider issuing and backing the bond
Through this agreement, the obligee and consumers are protected from financial harm because the surety backs the obligation of the principal. If any license laws are broken, harmed parties can file a claim with the surety for reimbursement. However, the principal (lender) is ultimately responsible for repaying the surety company.
How to Get an Employment Agency Bond
SuretyBonds.com provides the fastest and easiest way to get an employment agency bond. Some bonds are available for instant online purchase, while others require an application for personalized pricing.
Follow these quick steps to get your bond:
- Select your bond type and amount
- Apply online and provide any additional financials, if required
- Receive your free quote within one business day, if necessary
- Purchase your bond and sign documents
You’ll receive a digital or physical copy of your employment agency bond which you must file with the obligee.
How Do I Renew My Employment Agency Bond?
Most employment agency bonds expire annually and require renewal. You’ll receive email and phone notifications starting 90 days before your expiration date.
Be sure to pay your renewal invoice and file any additional paperwork, if instructed. Learn more about surety bond renewals here.
How Do I Update My Employment Agency Bond Form?
If you need to make any small adjustments to your official bond form, such as name or address, contact us at [email protected] outlining the requested update. If possible, we’ll issue a bond rider document to amend your bond free of charge.
Can I Get Bonded With Bad Credit?
Yes, it may be possible to get a staffing agency bond even with a low credit score. With our bad credit bonding options, we’ll work to match you with a provider at the best rate on the market. In some cases, we may request additional financials for underwriting.
