What Is a Security Guard Agency Bond?
In a number of states, you need to obtain a surety bond if you want to get licensed as a security guard agency. This license bond is a typical requirement for obtaining a security guard agency license that guarantees your legal compliance.
In situations where you fail to meet your obligations under the law, the bond can be used as a safety mechanism. A harmed party can file a claim against your bond. This is how they can demand a fair compensation for damages.
The security guard agency bond functions like a contract between three entities. Your security business is the principal which is legally required to get bonded. The obligee is the state authority that regulates your trade. The surety is the bond provider, which backs your company.
Questions about Security Guard Agency Bond
Where do I need to obtain a security guard agency bond to get licensed?
The Division of Licensing Services in the state of New York requires watch, guard and patrol agencies to obtain a $10,000 surety bond. You have to use the official bond form.
Michigan security guard agencies have to post a $25,000 bond to the state Department of Licensing and Regulatory Affairs.
Private detectives and guard agencies in Hawaii need to provide a $5,000 surety bond. This is the official bond form.
Security agencies in Wisconsin need to provide a $100,000 surety bond to the Department of Safety and Professional Services.
In West Virginia, security guard firms have to provide a $2,500 bond to the Secretary of State.
New Hampshire security guard agencies are required to post a $50,000 surety bond for a period of two years. You have to use the official bond form.
Security guards in Oklahoma need a $5,000 bond if they are unarmed, and $10,000 bond if they are armed.
How much will I pay for my bond?
The bond amount that is required from your security guard agency varies across the states. Your surety bond cost is based on it, but is only a small fraction of this amount This is called the bond premium. If your finances are in good shape, the rates are often between 1% and 5%.
How is your bond price formulated? Your surety examines your personal credit score, business financials, assets, liquidity, and even professional experience. By assessing these factors, it can judge the level of risk associated with bonding you. In case you are deemed as a stable applicant, you can expect to pay less for your security guard agency bond.
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|West Virginia Security Guard Agency Bond||$2,500||$100||$100||$100-$125||$125-$250|
|Oklahoma (unarmed) and Hawaii Security Guard Agency Bond||$5,000||$100||$100-$125||$125-$250||$250-$500|
|New York and Oklahoma (armed) Security Guard Agency Bond||$10,000||$100-$150||$100-$250||$250-$500||$500-$1,000|
|Michigan Security Guard Agency Bond||$25,000||$187.5-$375||$250-$625||$625-$1,250||$1,250-$2,500|
|New Hampshire Security Guard Agency Bond||$50,000||$375-$750||$500-$1,250||$1,250-$2,500||$2,500-$5,000|
|Wisconsin Security Guard Agency Bond||$100,000||$750-$1,500||$1,000-$2,500||$2,500-$5,000||$5,000-$10,000|
Is it possible to get bonded with bad credit?
Yes, you can get the bond you need with us, even if your finances are problematic. Lance Surety Bonds has designed its Bad Credit Surety Bonds program for applicants with low credit scores, tax liens, bankruptcies, and civil judgements.
You can expect bonding rates in the range of 5% and 10%. The higher price is there to compensate for the increased bonding risk. As we collaborate closely with a number of A-rated, T-listed surety companies, we can still offer you a top bonding rate that matches your particular situation.
How do I apply for a security guard agency bond?
Would you like to learn more about the way bonding works? Don’t miss out our detailed How to Get Bonded page.
Need help with your bond application, or have further questions? You can contact us at (877) 514-5146 and get assistance from our bonding specialists.