What Is a Talent Agency Bond?
Talent agencies must obtain a talent agency license in many places across the country, in order to run a legal business. As a part of the licensing process, some state authorities also require posting a talent agency bond. Since there is no national bond requirement, the bond amount varies from place to place.
Talent agency bonds protect the state and the clients of these agencies in case there is a breach of law in their operations. Being bonded means that your talent agency is trustworthy and safe to work with.
Like other surety bonds, the talent agency bond functions as a contract between three parties. On one side, your talent agency company is the principal that has to get bonded. The state authority that is licensing you is the obligee. The surety is the entity underwriting the bond, and providing the backing for the principal.
A bond claim process can be initiated if a talent agency does not abide by the law. Proven claims are a serious matter, which you can read more about in the Questions section below.
Questions about Talent Agency Bond
Who needs to obtain a talent agency bond?
A number of states such as California, Texas, and Florida require talent agencies to obtain more than a simple business license - a special talent agency license. In some cases, the licensing requirements include posting a talent agency bond.
The purpose of the bond is to protect the interests of agencies’ clients. Talent agencies are used as an intermediary to secure jobs for musicians, actors, authors, fashion models, movie makers, writers, journalists and even athletes, among others. The bond guarantees that these service providers will follow the highest possible standards when working with their clients.
Not all states across the U.S. require talent agencies to obtain a bond. It’s a good idea to check with your local authorities to find out what is required for your particular talent agency.
How much does a talent agency bond cost?
The cost of a talent agency bond varies from state to state. Bond amounts are different, and so are the bond prices that are derived from them. Bond cost is also influenced by your personal credit score and other finances.
There is a great difference in bonding amounts across the country. The lowest talent agency bond amount is required in Wyoming and Kansas, and is $500. The highest bond is in Washington, D.C. and is $100,000. Your state licensing body will inform you about the exact bond you need to provide.
While the bond amount is considerable in some places, your bond premium is only a fraction of it. For standard bonding market applicants, the usual bonding rates are between 1% and 4% of the bond amount. Thus for a $10,000 bond, you can expect to pay a premium of $100 to $400.
|Surety Bond Cost Based on Credit Score|
|Surety Bond Name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Kansas and Wyoming Talent Agency Bond||$500||$100||$100-$125||$125-$150||$150-$175|
|Arizona, Massachusetts, Nevada, New Jersey and Utah Talent Agency Bond||$1,000||$100-$125||$100-$150||$125-$175||$150-$200|
|Pennsylvania Talent Agency Bond||$3,000||$100-$125||$100-$150||$150-$200||$200-$250|
|Arkansas, Florida, Illinois and North Dakota Talent Agency Bond||$5,000||$100-$125||$100-$150||$150-$250||$250-$375|
|Maryland Talent Agency Bond||$7,000||$100-$150||$100-$175||$175-$350||$350-$525|
|Connecticut Talent Agency Bond||$7,500||$100-$150||$100-$187.5||$187.5-$375||$375-$562.5|
|Alaska, New York, North Carolina and Texas Talent Agency Bond||$10,000||$100-$150||$100-$300||$250-$500||$500-$750|
|California Talent Agency Bond||$50,000||$375-$750||$500-$1,500||$1,250-$2,500||$2,500-$3,750|
|Washington, D.C. Talent Agency Bond||$100,000||$750-$1,500||$1,000-$3,000||$2,500-$5,000||$5,000-$7,500|
What other factors are considered when setting your bond premium? Your surety provider will carefully assess your bond application, looking primarily at your personal credit score, as well as at your personal and business finances. Your professional experience also matters. The surety provider will evaluate the risk of bonding you, and your bond price will be lower if your overall status is stable.
For a complete overview of how your talent agency bond price is determined, our surety bond cost page has everything you need to know.
Can I get a talent agency bond with bad credit?
Financial problems can be difficult to resolve. Lance Surety Bonds experts know that getting bonded with bad credit can be an uphill battle. That’s why our Bad Credit Surety Bonds program is here, to help talent agency owners with low credit scores, tax liens, bankruptcies, or civil judgements. By getting bonded, they can stay in business and obtain the talent agency license they need.
The usual bad credit bonding premiums vary between 5% and 10%. While the price is higher, with us you’re guaranteed you are getting a top bonding rate with a trusted surety provider. We foster close connections with a number of A-rated, T-listed surety companies, so we can choose the best bonding option for your case.
How do I get my talent agency bond?
Getting your talent agency bond has never been easier. Just apply online today! Attach all necessary paperwork and complete the application form. Lance Surety Bonds will deliver your free, no-obligations bond quote in no time.
Our How to Get Bonded page has all the facts about bonding.
Any questions or concerns? Just call us at (877) 514-5146 and our bonding specialists will provide you with the assistance you need.
How are bond claims handled for talent agencies?
It’s important to understand how talent agency bonds work before you get bonded. They are not insurance for your business, but instead are a safety net for your clients. Bonds guarantee that their interests will be protected in case your agency transgresses applicable rules and regulations.
If you fail to abide by the law, a harmed party can start a claim process against your bond. Proven claims are a serious financial threat for your company. While your surety covers all costs initially, such as repaying the claimant up to the penal sum of the bond, you need to reimburse the surety afterwards.
Besides immediate financial burden, claims jeopardize your future business operations as well. It’s difficult to get bonded after a proven claim, and there is often harm done to your reputation, too. Avoiding claims is by far the best way to prevent such situations.