PCA Agency Surety Bond

There’s a quick way to get an estimate of your bonding costs, but you first need to know the total value of the required bond. Each state determines its own required total bond values. This is the maximum penal sum of the bond, i.e. the maximum a claimant could get. Some states have fixed amounts for all PCA agencies, while others determine them based on the fees collected by the agency in a given year.

For example, Minnesota PCA agency bonds have a total bond amount of $50,000 if the agency had less than $300,000 in revenue over the past year or if they are a newly-enrolled provider. For those whose yearly revenue exceeds $300,000, the bond amount is $100,000. Be sure to check for additional bonding requirements, as Minnesota also requires a $20,000 fidelity bond.

PCA agencies pay yearly premiums in order to obtain the surety bond they need. The premium can be as little as 1% for applicants with good credit and a clean credit report. Additional factors can also contribute to your premium; learn all about it on our What Does a Surety Bond Cost? Page.

Surety bond companies are responsible for any claims you trigger, so they assess all applicants’ likelihood of triggering claims. A bad credit score is a red flag. So are civil judgments, tax liens or other past due items. All of these will raise your premiums (in the range of 5% - 10%), but they will not prevent you from getting bonded.

Our bad credit surety bonds expertise guarantees that you will get the lowest possible premium, tailored to your situation.

The application can vary based on the state and the surety bonds company that underwrites it. After you submit our online application, we’ll contact you and let you know how to proceed. Some underwriters may want to look into your financial statements (both business and personal) to better assess the risk. Signing an indemnity agreement is also a standard procedure.

After your application has been finalized, we will be able to get your bond issued in one or two business days in most situations.

Facing a claim is certainly not a pleasant scenario. Violating your state’s statutes and applicable regulations can be very costly, which is why it’s imperative to provide regular training to all staff in your personal care agency.

If you suspect you have been wrongfully accused and wish to fight the claim in court, you can present your case to your bonding company first. If they agree with you, they can help with legal advice and increase your chances of winning the case. Document your business and your communications carefully, in case of such a dispute.