A Guide to Professional Employment Organization Bond
The professional employment organization (PEO) bond is relatively new to the surety industry. Because PEOs essentially function as outsourced HR departments, they have a great deal of financial responsibility. To reduce fraud and other instances of malpractice within the PEO market, government agencies have begun regulating PEOs much more strictly. As a result, a number of states have established PEO bonding requirements.
State Specific Costs
Professional employment organization bond costs and requirements vary greatly as the bond amounts and regulations surrounding each license are established on a state level. Select your state below for more information about PEO bonds in your area or call 1 (800) 308-4358 to speak with a surety expert.
What do PEO bonds do?
The financial security provided by surety bonds reinforces the operational certainty for PEOs. The contractual legal language of PEO bonds typically requires the following of bonded enterprises:
- meet state registration and licensing requirements
- provide workers’ compensation policy collateral
- guarantee PEO performance of employer responsibilities
- guarantee payment of clients’ service fees
How Can I Get a PEO Bond?
Because the amount required is typically $50,000 to $100,000, underwriters are pretty rigid when reviewing applications. Those who qualify for the standard bonding market will have a much easier time getting a the bond. If you need a PEO bond, contact one of our surety specialists to see if you qualify.
How Much Will a PEO Bond Cost?
Your exact surety bond cost will vary depending on your state, the bond amount and your individual application. The best way to determine what your PEO surety bond will cost is to contact one of our surety specialists for a free, no obligation surety bond quote. If you qualify for the bond, SuretyBonds.com can get you a price quote with one business day.
If you are establishing a new professional employment organization or are looking for a new surety bond producer, look no further. Call SuretyBonds.com at 1 (800) 308-4358 and speak with one of our specialists immediately, or apply online in just two minutes. After reviewing your application, one of our surety specialists will call you to discuss your options. Let us help you get your bond at a the most competitive rate!