Vermont Employee Leasing Company Bond Guide
If you’re applying for an employee leasing company license in Vermont, you’ll need this surety bond.
Bond Overview
- Purpose: To provide financial security and reinforce operational certainty for clients
- Who Needs It: Providers of outsourced HR and payroll services without positive working capital
- Regulating Body: The Vermont Department of Labor
- Required Coverage: $100,000 minimum
- Premium Rate: 1–10%, credit-based
Learn all about the bond requirements and process in this guide.
What Is a Vermont Employee Leasing Company Bond?
A Vermont employee leasing company bond holds professional employment organizations financially liable for following state rules and regulations.
Outsourcing human resources functions creates risk for clients of employee leasing companies. These surety bonds provide financial security and reinforce operational certainty.
How Much Do Employee Leasing Company Bonds Cost in Vermont?
Vermont employee leasing company bonds cost a small percentage of the required bond amount, typically 1–10%.
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 an Employee Leasing Company Bond?
The Vermont Department of Labor requires all employee leasing companies to submit a surety bond to meet the financial security requirements.
The bond must be the greater of $100,000 or 5% of the
prior year's total Vermont wages, benefits, workers' compensation premiums or awards or unemployment compensation contributions
Alternatively, you can submit an ILOC or other security. However, with a surety bond, you only pay a small percentage of the coverage amount rather than full collateral.
How Do I Get My Bond?
SuretyBonds.com provides the fastest and easiest way to get a Vermont employee leasing company 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 email you the bond shortly after purchase. Be sure to file the bond with the Department of Labor as instructed.
If you have any questions, call our friendly surety experts at 1 (800) 308-4358 for assistance.
How Does a Vermont Employee Leasing Company Bond Work?
As with all surety bonds, an employee leasing company bond creates a legal contract between three parties:
- Principal: You, the employee leasing company owner(s) filing the bond
- Obligee: The Vermont Department of Labor requiring the bond
- Surety: The provider issuing the bond
This holds you financially responsible for upholding all provisions of VT Code of Rules 24 010 007.
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 employee leasing company bond, simply pay your renewal invoice when prompted.
We’ll begin contacting you by phone and email 90 days before the expiration date.
