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.
- New Jersey
- New York
- South Carolina
What do PEO bonds
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 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.
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, we 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. Speak with one of our specialists immediately. After reviewing your application, one of our surety specialists will to discuss your options. Let us help you get your bond at a the most competitive rate!
Apply for your surety bond
Get a FREE PEO Bond Quote Today! Click here to begin