What is a Wisconsin Prescription Drug Distributor Bond?
The Wisconsin Department of Safety and Professional Services Division of Professional Credential Processing requires wholesale prescription drug distributors to post a surety bond as part of the licensing requirements.
The Prescription Drug Distributor Bond guarantees that prescription drug wholesale distributor licensees conduct business in compliance with the rules and regulations of the state.
The bond also aims to secure payment for fees and costs associated with the issuance of a license under Wis. Stats. S 450.71. It protects the state and consumers from financial losses incurred as a result of unlawful business practices made by the distributor. However, a wholesale distributor that operates more than one facility is not required to submit this bond under 450.071(5)(a).
What are the bond conditions?
- The Surety must be authorized to conduct business in the State of Wisconsin.
- The Principal (wholesale distributor) promises to perform his or her duties lawfully and in compliance with all laws and regulations as indicated in Wis. Stats. 450.071 and applicable sections of the Wisconsin Administrative Code.
- The bond will remain in effect for the entire period of an unexpired prescription drug wholesale distributor’s license term.
- The Surety reserves the right to terminate the bond early by giving 60 days’ written notice to the State Department before the date of cancellation.
- The liability of Surety on this bond shall cease 60 days after receipt of the termination notice by State Department and Principal, or on the filing and acceptance of a new bond whichever comes first.
What is the bond amount?
The bond amount is currently set at $5,000 and may not exceed $100,000 (according to Wis. Stats. S. 450.071(5)(a)).
The cost of the bond is a percentage of the bond amount (bond premium). The percentage ranges from 1%-5% of the bond amount. Bond costs are subject to underwriting and may vary depending on your credit score and person/business standing.
To get an accurate estimate of your bond costs, get your FREE quote HERE!
How do I obtain a Prescription Drug Distributor Bond?
We have made the surety bond procedure easier for you! Just follow these simple steps:
STEP 1: You must first apply for this type of surety bond. If you are ready to do that now, you may APPLY HERE!
Once we have received your application, we will immediately start the bonding process. We will inform you about the important documents that you need to submit for the next step, which is the underwriting process.
STEP 2: An underwriter will take a thorough look at the following:
- Your job performance history
- Your credit score
- Your copy of the BOND FORM which can be obtained from the State Department of Safety and Professional Services Credentialing Division
STEP 3: After the underwriting process has been fulfilled, we will issue your surety bond and send it to you immediately!
Need to consult with a surety expert about your prescription Drug Distributor Bond requirements? Please feel free to contact us!