What Is a Kentucky Telemarketing Company Bond?
Telephone soliciting companies in Kentucky have to register with the Office of the Attorney General in the state. Obtaining an appropriate telemarketing bond is one of the legal prerequisites before you start your operations.
Your surety bond functions as an extra layer of protection for the general public against unethical and illegal activities that telemarketers may commit. In a way, it is an additional assurance for your legal compliance. A harmed entity may bring a claim against your bond to seek a financial reimbursement for suffered damages.
Just like surety bonds in other states, your Kentucky surety bond works like a contract between three parties. Your telephone solicitation company is the principal. The Kentucky Office of the Attorney General is the obligee that imposes the bond requirement. Last but not least, it is the surety that provides the bonding.
Frequently Asked Questions
Who needs a telemarketing company bond?
In Kentucky, any company that wants to conduct telephone solicitation has to register with the Office of the Attorney General a minimum of ten days before starting its activity. A $50,000 surety bond is required in this process, which has to be filed in the official bond form.
The surety bond provides a guarantee for your compliance with the Kentucky Telephone Solicitations Act of 1994 (Kentucky Revised Statutes 367.46951). It should be kept in full force during your registration period.
What is the bond price?
The bonding amount requirement that you have to meet as a Kentucky telephone solicitor is $50,000. This is different from the price you pay to get bonded, which is called your bond premium. If your overall profile is stable, the typical rates are between 1% and 3%.
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Kentucky telemarketing company bond||$50,000||$375-$750||$500-$1,250||$1,250-$2,500||$2,500-$5,000|
The formation of your surety bond cost is based on a couple of important financial factors. Your surety takes a close look at your personal credit score and business finances, plus any assets and liquidity that you can showcase. In this way, it determines the level of risk that is associated with bonding you. If you are deemed a solid candidate, you can expect to pay a lower bond premium.
What if my credit is bad?
If you are a telemarketer with problematic finances such as a low credit score, bankruptcies, tax liens, or civil judgements, getting the bond you need to start your business can be difficult. That’s why Lance Surety Bonds operates its Bad Credit Surety Bonds program. It is designed for applicants with bad credit and other financial issues.
The premiums you can expect in this special program are typically between 5% to 10%. They are higher, so that they can compensate for the increased bond risk. As we collaborate with a number of A-rated, T-listed surety companies, we can shop around for you and find the right bonding option that matches your circumstances.
How can I get bonded?
How does bonding work exactly? You can learn the basics in our How to Get Bonded page.
Have more questions, or need help with your application? You can always call us at (877) 514-5146. Our bonding specialists will be happy to assist you. .
How are bond claims handled for telemarketers?
Your telemarketing bond is a safety net for the general public in Kentucky. It does not protect your business, which means you are liable for reimbursing any harms that lead to surety bond claims. Such cases include transgressing from your legal obligations under the Kentucky Telephone Solicitations Act, as well as applicable federal regulations.
On proven claims, your surety may step in to pay the damages at first. You still need to cover all costs eventually. This means that bond claims can be a serious financial threat to your business. They can also make it difficult to get bonded in the future.