Overview of Pennsylvania Health Club Bond Requirements

A health club bond is required of persons who wish to register a health club in the state of Pennsylvania. The amount of this bond varies depending on the length of the contracts offered by the club and can be $50,000, $100,000, or $200,000.

Getting bonded guarantees that health clubs owners will comply with the requirements of the HCA, and in particular that buyers will receive refunds under certain conditions. If this condition is violated by the health club, a claim against the bond can be filed.

When a claim against the bond is filed, the surety must investigate the issue and extend compensation to claimants. Compensation extended under a bond claim is intended to cover losses or damages suffered by claimants and can be as high as the full penal sum of the bond.

If you are a first-time bond applicant, see our detailed ‘What is a surety bond’ guide for full information about how bonds work, and why you need one!

Start your surety bond application today! Why us?
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See the following sections to find out more about the cost of this bond, how bond claims happen, and how you can get bonded.

Want to speak to someone about getting bonded? Call our bond professionals at (866)-450-3412 anytime!

Pennsylvania Health Club Bond Cost

The cost to get bonded is equal to a small percentage of the total amount of the bond you need to get. The amount for this type of bond varies between $50,000, $100,000, and $200,000. The amount of your bond will depend on the duration of membership contracts you provide to your clients.

The cost is determined by the surety which bases its decision primarily on the applicant’s personal credit score, as well as on their financial statements, assets, liquidity and work experience.

Applicants who have a high credit score, one of 700 FICO or more, can expect to get a rate on their bond between .75% and 1.5% of the amount of their bond. Those with lower scores, will usually get a rate above that range.

For a quick estimate of the cost of your bond, try our bond calculator below or see the table below! To get an exact quote on your bond, see the section on getting bonded!

Bond Cost Based on Credit Score
Pennsylvania Health Club Bond Surety bond amount Above 700 Between 650-699 Between 600-649 Below 599
Contracts for no more than 12 months $50,000 $375-$750 $500-$1,250 $1,250-$2,500 $2,500-$3,750
Contracts for more than 12 and less than 24 months $100,000 $750-$1,500 $1,000-$2,500 $2,500-$5,000 $5,000-$7,500
Contracts for more than 24 months $200,000 $1,500-$3,000 $2,000-$5,000 $5,000-$10,000 $10,000-$15,000

Bad Credit Bond Program

Despite a low or nonexistent credit score, you can get bonded just as everyone else! Thanks to our Bad Credit Program, getting bonded with bad credit is quite easy.

Rates under this program are slightly higher than for applicants with higher scores, because of the higher risk perceived by sureties when issuing bonds to bad credit applicants. Bond rates can be improved by improving your credit score which means you can get increasingly better rates every time!

Continue to the program page to request a free quote and to find out more about getting bonded with low credit.

Bond Claims

Under the HCA, buyers of health club memberships (contracts) have recourse against the health club if they are declined a refund of their payment to the club under certain conditions.

For example, under the HCA, members can request a refund if the club closes for more than 30 days and fails to provide an alternative facility within 10 miles of the one mentioned in the contract. Similarly, if the club goes out of business, a refund can be requested by a buyer.

If the club fails to comply with the requirement to provide a refund, buyers are eligible to file a claim against the health club’s bond, in order to request compensation. Compensation issued by a surety under a bond claim can be as high as the full amount of the bond.

When a surety compensates claimants under a bond claim, the health club against which the bond claim was made must reimburse the surety in full for all payments it has made to buyers. Given the amounts of this bond, dealing with a bond claim can be a very costly and difficult situation for health club owners.

The easiest and simplest way for owner of health clubs to avoid bond claims is to make sure they comply with all provisions of the HCA at all times. If you have any concerns about a possible bond claim, make sure to contact your surety for assistance!

Apply for Your PA Health Club Bond Here!

Complete our bond form to get started with your bond application or to simply request a free quote. We will soon provide you with a quote along with further details about completing the application process.

It will take about two days for your bond to be issued, once we have your final application. We will then provide you with a physical copy of your bond agreement via standard mail as well as with a digital copy via email.

Not ready to apply? Then simply get a free no-obligations quote, so you can see our low prices!

Do you have any questions regarding this bond? Call us at (866)-450-3412 to speak to our bond experts!


About the author:
Todd Bryant
Todd Bryant is a graduate of Germantown Academy and the University of Pittsburgh College of Business Administration Honors College. He has been President of Bryant Surety Bonds, Inc., an A+ rated Business with the Better Business Bureau, since 2007. Licensed as a producer with the Department of Insurance, he has been published in the National Association of Surety Bond Producers newsletter and on numerous authoritative publications such as The Washington Post, Entrepreneur.com, Azcentral.com and many more.