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Information on Telemarketing Bonds
SuretyBonds.com is legally licensed to issue telemarketing bonds in every state. Whether you work in Arizona, Florida, Utah or California, we can bond you!
Although phone solicitation is a great way to reach new customers, there are rules and regulations within the the telemarketing industry to prevent customer harassment. Most states require that telemarketers and telephone solicitors maintain an active telemarketing surety bond. Telemarketing companies usually have to purchase this type of surety bond before applying for or renewing a business license. The surety experts at SuretyBonds.com have developed this simple guide for telemarketing professionals to understand the bonding process.
What is a Telemarketing Bond?
Telemarketing is a form of direct marketing to public consumer which involves calling and sometimes appointment setting for sales presentations. Because the telemarketing industry has been associated with unprofessional and pushy sales techniques, many states have established licensing programs and require telemarketing surety bonds to ensure the telemarketing professional’s compliance to the rules and industry regulations.
A telemarketing bond (also known as phone solicitor bond) is required for many call centers before they can obtain licensing to call into any state. For example a, a licensee must acquire a Florida telemarketing bond before they can make solicitation calls into Florida. However, these bonds are not necessarily for the call centers, but for the protection of the state and consumers that are called.
Learn More About Telemarketing Bonds
Three parties are involved with every telemarketing surety bond that’s issued:
- The principal is the telemarketing company or professional that purchases the bond as a guarantee that obligations will be completed according to the bond’s terms.
- The obligee is the government agency that requires the bond as a way to reinforce industry regulations.
- The surety is the insurance underwriter that issues the bond and backs the principal’s ability to fulfill the bond’s requirements.
The exact expectations of a telemarketer bond that are enforced vary depending on the specific bond form, but generally, these bonds provide consumer and government protection:
- Against unruly telemarketing companies that choose to ignore laws
- Against companies that accidentally break a law due to oversight.
State Specific Costs and Coverage
Telemarketing bond costs and requirements vary greatly as the bond amounts and regulations surrounding each license are established on a state level. Most states require telemarketing professionals to provide coverage worth somewhere between $25,000 and $50,000. However while some states require a bond amount as low as $10,000, other states like Arizona and California require $100,000 of coverage.
To determine how much surety insurance coverage you need, contact the government agency that regulates telemarketers in your state. Or select your state below for more information about telemarketing bonds in your area or call 1 (800) 308-4358 to speak with a surety expert.
Pay a Low Rate for Your Telemarketing Bond
Telemarketing surety bond premiums are calculated based mainly on two things: the bond amount and the applicant’s financial records. However, this type of surety bond is unique because the specific products the telemarketing company sells can also affect the premium because different markets are considered riskier than others. Fortunately, the surety experts at SuretyBonds.com work as brokers who shop every client’s telemarketing bond with multiple underwriters to find the lowest rate available, no matter the circumstance.
Our application process only takes a few minutes, and you’ll have a price quote within one business day of your application. Your telemarketing bond will be issued once your payment is processed, you’ll receive a copy of your bond via email immediately, then you’ll receive the original bond form in the mail via your preferred shipping method. Don’t waste another second! Get your free, no-obligation surety bond quote today!
Bad Credit? No Problem! We Can Help
To avoid the potential for claims, some surety providers avoid working with clients who have poor credit. SuretyBonds.com actually works with underwriters who specialize in low credit bonds. This means we can approve 99% of applicants for telemarketing bonds regardless of credit history. To help lighten the load, SuretyBonds.com also offers premium financing to qualified applicants. So what are you waiting for? Don’t let a low credit score keep you from getting the bond you need. Apply today!
What’s the Small Print?
There are a few things you should know in regards to telemarketing bonds:
- Telemarketer bonds are usually valid for one year. For this reason, these bonds need to be renewed before their expiration date for telemarketing companies to remain active and compliant.
- While many states require telemarketers to get bonded, some states do not. States that do not require Telemarketing Bonds include: Alaska, Colorado, Connecticut
- Other factors that determine if you need this bond include what are you selling, how you dial telephone numbers (manual vs. autodial), and where you are getting your call list