Talent Agency Bonds - How much would a 50,000$ Bond cost? Any tips?

Question

Talent Agency Bonds - How much would a 50,000$ Bond cost? Any tips?

Answer 1

If it's a license bond, it's probably really cheap - like $250.  If it's a payment bond, it's going to be really expensive - like maybe $5,000.

You'll have to talk to the guy that does the rest of the insurance, to get the bond.

Answer 2

There are multiple types of bonds, so whoever is requiring the bond from you should be able to give you either a blank form of the bond or a sample of something they have accepted in the past.  Do not assume this is something everyone asks for and that any company can do it for you.  If you have a copy of the bond form, this process will be a lot easier when you go to the bond agent.

A bond of any kind is going to require quite a bit of qualification.  Usually your personal credit is run, your companies financial stability is questioned and your experience is referenced.  From there the determination will be made as to whether you are "bondable".  Once you have been qualified, the bond will be issued and you will be required to pay the premium in full each year.  The premium will more than likely be somewhere between $500-$1,000 per year.

If you are borderline in you qualification, sometimes the surety company will increase premium as opposed to declining you altogether.  This is a good thing because if you are not bondable, there is not an alternative way to get this done.  You will want to speak to a local independent insurance agent and they can either write the bond for you or give you a referral to another agent who can.  If you are in New Mexico, feel free to contact Commercial West Insurance Agency.

Good luck to you!