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Kentucky
Vacation Club Bond

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Coverage Amount: $50,000
Term Length: 1 year
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Kentucky Vacation Club Bond Guide

If you’re opening a membership-based travel service in Kentucky, you’ll likely need this surety bond. 

Bond Overview

  • Purpose: To protect vacation club members from financial harm
  • Who Needs It: Vacation clubs charging membership fees over $35 
  • Regulating Body: The Kentucky Attorney General
  • Required Coverage: $50,000
  • Premium Rate: Credit-based, starting at $750

Learn all about the bond requirements and process in this guide. 

What Is a Kentucky Vacation Club Bond?

A Kentucky vacation club bond holds club owners liable for upholding membership contracts and protects prepaid fees. 

The Kentucky Attorney General requires this bond for businesses that offer members discounts on vacation plans and services.

How Much Do Vacation Club Bonds Cost?

The $50,000 Kentucky vacation club bond typically costs $750–$5,000. Exact rates vary based on personal credit score. 

Apply for your free, personalized quote now!

Bond Type
$50,000Vacation Club Bond

SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees. 

Who Needs a Vacation Club Bond? 

Vacation clubs with membership fees over $35 need a $50,000 business to do business in Kentucky. The bond can be used to repay prepaid membership fees if a club goes out of business or otherwise fails to fulfill contracts. 

How Does a Kentucky Vacation Club Bond Work? 

As with all surety bonds, a vacation club bond creates a legal contract between three parties: 

  1. Principal: You, the vacation club owner filing the bond
  2. Obligee: The Kentucky Attorney General requiring the bond
  3. Surety: The provider issuing the bond

This holds you financially responsible for upholding Kentucky Revised Statutes 367.395.

If you break the bond terms, harmed parties can file claims. The surety will pay valid claims up to the bond amount, but you are ultimately responsible for refunding the surety. 

How Do I Renew My Bond?

To renew your vacation club bond, simply pay your renewal invoice when prompted. We’ll begin contacting you by phone and email 90 days before the expiration date. 

More Resources

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