PCA Agency Surety Bond Requirements
Personal care assistance (PCA) agencies in some states are required to get a surety bond before offering their services. Such agencies provide assistance to individuals who are disabled in some way independently or in cooperation with individuals’ family members.
The amount of this bond varies from state to state. If you are planning to offer such services in your state, contact your local licensing authority to find out if you need to post a bond.
Why do I need this bond?
The purpose of the personal care assistance bond is to guarantee that PCA agencies will comply with state provisions that regulate the performance of their services. It is a type of protection for individuals and their families that make use of the services offered by such agencies.
If a bonded agency violates the provisions of their bond agreement and causes losses or damages to someone they are providing services to, a claim can be filed against their bond. The bonding company must then investigate the claim and determine whether compensation is due to claimants.
If compensation is extended to claimants, it may be in as much as the full amount of the surety bond.
For more information about how bonds work, and why they are required, see our ‘What is a surety bond’ guide!
If you have any questions about getting a bond for your PCA agency, call us at 866.450.3412 anytime!
What Is The Cost of Getting the PCA Agency Bond?
The cost of this bond will depend on its amount. For example, PCA agencies in Minnesota must post a $50,000 bond when they enroll for the first time with the Department of Human Services. Later, the amount of the bond may become $100,000 if the agency has more than $300,000 in revenue over the course of a year.
To get bonded you must pay a surety bond premium. This premium is determined by the surety on the basis of a number of financial indicators which it considers and evaluates. The following are the most important factors that influence the cost of your bond.
Factors That Determine Your Bond Premium
Your personal credit score is the factor that has the greatest influence on your bond premium.
A high credit score is considered by sureties as a sign of financial stability, and applicants with such scores are usually offered some of the lowest possible rates.
If you have a very high score, you can get bonded at a rate as low as 1% of the full amount of your bond.
Those who have low credit scores typically can get bonded at a rate between 3% and 5%.
In addition to your credit score, the surety may also want to review some of the following information as well:
- Personal and business financial statements
- Fixed and liquid assets
- Work experience and record
Wondering how much your bond will cost? Complete our online application to get a free surety bond quote. It takes minutes and there is no obligation.
How Do Bond Claims Occur?
A PCA agency surety bond is an agreement that the bonded agency will comply with state regulations. If an agency violates these regulations and causes damages or losses to a recipient of its services, a claim can be made against their bond.
When an individual files a claim against a bond, the surety must investigate the claim. If it deems the claim to be legitimate, it will then compensate the claimant. The compensation that the surety extends may even be as much as the full amount of the bond.
After the claim has been settled, the bonded agency must reimburse the surety in full for any compensation it has extended. Surety companies are not liable for any violations committed by the parties that they issue bonds for.
To avoid having to deal with claims, the best course of action is to always remain in compliance with the conditions of your bond agreement. That way, the only cost associated with getting bonded will be the payment of your initial bond premium.
How Can I Get a PCA Agency Bond?
To get started, click on the banner below and complete our brief bond form. We will then contact you to provide you with a free quote on your bond and more information about completing the process.
If you have any questions about getting this bond in your state, call us at 866.450.3412 anytime!