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Employment Agency Bond

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An employment agency bond is a license and permit surety bond required by government entities in order to receive a license in a jurisdiction and provide employment placement services to its citizens.

Key Highlights

  • An employment agency bond is also known as a staffing agency bond.
  • The bond guarantees the agency will perform the services agreed upon in the contract between the agency and the employee or employer.
  • Any business that charges a fee to assist people in securing employment is generally required to obtain an employment agency bond.

How do I purchase an employment agency bond?

NFP, the nation's largest and most reliable surety company, is authorized to issue employment agency bonds in each of the 50 states. We can provide the best rates for your bond, as well as the fastest issuance, to get your business off and running.

Our short online application makes it easy. Click below to start the application process today.

Employment Agency Bond FAQs

An employment agency bond is a license and permit surety bond required by government entities in order to receive a license in a jurisdiction and provide employment placement services to its citizens. It is also known as a staffing agency bond. An employment agency is any person or for-profit business that, for a fee, brings together employment seekers and those looking for employees. The employment seekers can be those looking for permanent employment, temporary staffing, executive recruitment, or home care. The bond guarantees the agency will perform the services agreed upon in the contract between the agency and the employee or employer.

Any business that charges a fee to assist people in securing employment is generally required to obtain an employment agency bond, including:

  • Temporary staffing agencies
  • Permanent placement firms
  • Specialized recruiters

The bond provides a layer of accountability, as it allows clients to file claims if they suffer financial harm due to the agency’s unlawful or unethical behavior. If a valid claim is made, the surety company pays the affected party, but the agency is ultimately responsible for reimbursing the surety. This system helps maintain trust in the employment services industry and ensures that agencies uphold high standards of conduct

The cost of an employment agency bond varies depending on several factors, including your credit score, financial history, and business experience.

In general, the bond amount typically ranges from $500 to $50,000, depending on the jurisdiction and the type of agency, while the premium is usually between 0.5 and 5%.

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