Kentucky Service Contract Provider Bond Guide
If you’re registering to become a service contract provider in Kentucky, you’ll need this surety bond.
Bond Overview
- Purpose: To ensure service contract providers meet state compliance requirements and uphold contracts
- Who Needs It: Companies that issue service contracts in Kentucky
- Regulating Body: The Kentucky Department of Insurance
- Required Coverage: $50,000
- Premium Rate: Typically 1–5% based on credit score
Learn all about the bond requirements and process in this guide.
What Is a Kentucky Service Warranty Provider Bond?
A Kentucky service warranty provider bond protects consumers against fraudulent or negligent service contract practices. The Kentucky Department of Insurance requires a minimum $50,000 for all service contract providers.
How Much Do Service Contract Provider Bonds Cost?
A $50,000 Kentucky service contract provider bond costs a small percentage of the coverage amount, typically 1–5%. That means you could pay as low as $500 if you have excellent credit.
Exact rates vary based on personal credit score. Apply for your free quote now!
Who Needs a Service Contract Provider Bond?
The Department of Insurance requires this bond to register as a service contract provider with the Kentucky Commissioner of Insurance.
You can meet the financial security requirement in one of the following ways:
- Purchase a surety bond that is the greater of $50,000 or 25% of your annual contract revenue
- Prove a net worth of at least $100 million
- Maintain a contractual liability insurance policy that guarantees performance
A surety bond is typically the most affordable and efficient option. If you have questions about which method is right for you, give us a call to speak with an expert.
How Do I Get My Bond?
SuretyBonds.com provides the fastest and easiest way to get a Kentucky service contract provider bond. Just follow these quick steps:
- Apply: Submit an online quote request form
- Quote: Receive your quote within one day
- Sign: Complete the indemnity agreement
- Buy: Purchase the bond online 24/7
We’ll mail you the bond via your preferred shipping method. Be sure to file it with the Kentucky Department of Insurance as instructed.
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Does a Kentucky Service Contract Provider Bond Work?
A service contract provider bond creates a legal contract between these three parties:
- Principal: You, the service contract provider filing the bond
- Obligee: The Kentucky Department of Insurance requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for upholding the provisions of Kentucky Administrative Regulations Title 806, Chapter 5, Regulation 60.
If you break the bond terms, harmed parties can file claims. The surety will pay valid claims up to the bond amount, but you must ultimately refund the surety.
How Do I Renew My Bond?
These bonds expire annually. To renew your service contract provider bond, simply pay your renewal invoice when prompted.
We’ll begin contacting you by phone and email 90 days before the expiration date.
