Surety Bond for Virginia Home Care Organizations
The Virginia Department of Health has a mandated that a $50,000 bond be posted by all contractors doing business with Home Care Organizations. This bond is to be posted in addition to the HCO’s liability insurance, with the primary objective of providing protection for patients or individuals that have suffered injury caused by negligent or criminal acts of an HCO’s contract personnel. The bond serves to guarantee to the HCO that the bonded contract will fulfill their contractual obligations, and that the contractor will be liable for any criminal or negligent acts that harm patients.
The Home Care Organization actually serves as the obligee, requiring its contractors to post the bond. The HCO can either help pay the bond premium, by having the costs worked into their contract, or can leave it up to the contractor to take care of.
Since this is a very new requirement, many surety companies are not yet willing to write it, as no information exists regarding claims and loss ratios. However, Lance Surety Bond Associates, Inc. has been proactive in working closely with some of our top sureties to develop aggressive programs for this bond type. If you’re a contractor working with an HCO, and are being required to post this bond, apply on our website for a free quote.
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Victor Lance is the founder and president of Lance Surety Bond Associates, Inc. He began his career as an officer in the U.S. Marine Corps, serving two combat tours. As president of Lance Surety, he now focuses on educating and assisting small businesses throughout the country with various license and bond requirements. Victor graduated from Villanova University with a degree in Business Administration and holds a Masters in Business Administration (MBA) from the University of Michigan's Ross School of Business.
Latest posts by Victor J. Lance, President/Owner (see all)
- D.C. Requires Real Estate Appraisal Management Companies to Post a Bond - November 11, 2019
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- NY Introduces Permanent Licensing Requirements for Mortgage Servicers - October 23, 2019
