What is a Telemarketing Bond?
If you operate a telemarketing company, most states will require you to obtain a surety bond to get your license to operate. This bond is in place to serve as a guarantee to the state and the public that your company and its employees will comply with industry regulations and laws, including the non-harassment policy. This protects against both intentional and accidental oversight.
How does a telemarketing bond work?
Each state sets its requirements for telemarketing bonds. The telemarketing company must adhere to those terms or face a penalty. In telemarketing bonds, as with other surety bonds, there are three parties: the obligee, the principal, and the surety.
The obligee is the state agency that requires your company to obtain the telemarketing bond to maintain your licensing.
The principal is the individual or business that must purchase the telemarketing bond.
The surety is the company that serves as the underwriter for the telemarketing bond.
If your company fails to meet the terms that are set in the bond with your state, the state can then file a claim against the bond. The surety company will look into the claim and if they find that your business did violate the terms of the bond, whether intentionally, or as an accident, then they will make a payment to the complainant, not to exceed the total bond amount. Your company will be liable for reimbursing the payment made by the surety company.
What is the cost of a telemarketing bond?
Your state determines what the mandatory coverage is for telemarketing bonds. It could be anywhere between $10,000 and $100,000. You are required to pay a premium, which is based on several factors including the amount of coverage required. It is typically a small percentage of the bond amount.
You can request your free quote today, and an agent will be able to calculate the most accurate premium rate for you. Once your paperwork and payment are complete, we will get your telemarketing bond paperwork sent out as soon as possible, so there is no delay in getting your license from the state.