Montana Professional Employer Organization Bond Guide
If you’re opening a professional employer organization in Montana, you’ll likely need this surety bond.
Bond Overview
- Purpose: To provide financial security and operational certainty for PEO clients
- Who Needs It: PEOs that cannot prove a $50,000 minimum accounting net worth
- Regulating Body: The Montana Department of Labor and Industry
- Required Coverage: $50,000–$500,000
- Premium Rate: 1–10% based on credit score
Learn all about the bond requirements and process in this guide.
What Is a Montana Professional Employer Organization Bond?
A Montana professional employer organization (PEO) surety bond holds PEOs liable for the following:
- Meeting state regulations and licensing requirements
- Handling worker’s compensation policies properly
- Managing payroll services responsibly
- Fulfilling employer contracts
The Montana Department of Labor and Industry requires this bond as part of the PEO licensing process to protect the state, clients and the general public.
How Much Do Professional Employer Organization Bonds Cost in Montana?
Montana professional employer organization bonds cost a small percentage of the bond amount, typically 1–10% based on credit score.
Exact rates vary based on personal credit score. Apply for your free quote now!
SuretyBonds.com offers the lowest available rates from our nationwide provider network with no added fees.
Who Needs a PEO Bond?
The Montana Department of Labor and Industry requires a PEO license for any business that provides long-term HR services, such as:
- Payroll processing
- Benefits administration
- Worker’s compensation coverage
- HR compliance
All applicants must also demonstrate a net worth of at least $50,000. If you do not meet the net worth requirement, you can submit a surety bond instead as financial security.
How Do I Get My Bond?
SuretyBonds.com provides the fastest and easiest way to get a Montana professional employer organization 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 the bond with the Montana Department of Labor and Industry as instructed.
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Does a Montana Professional Employer Organization Bond Work?
As with all surety bonds, a PEO bond creates a legal contract between three parties:
- Principal: You, the professional employer organization filing the bond
- Obligee: The Montana Department of Labor and Industry requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for upholding Montana Code Annotated Title 39 Chapter 8.
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?
These bonds expire annually. To renew your PEO bond, simply pay your renewal invoice when prompted.
We’ll begin contacting you by phone and email 90 days before the expiration date.
After renewing, you’ll receive a continuation certificate to file with the Montana Department of Labor and Industry as proof of ongoing coverage.
