Overview of Security Guard Agency Bond Requirements
Security guard agencies across the country are commonly required to get a license surety bond as a licensing requirement. The purpose of this bond is to guarantee that agencies will comply with local rules regarding the operation of a security guard agency. The bond also guarantees protection to agencies’ clients against theft or other damages and losses when receiving security services.
These bonds are required in a number of states such as: Georgia, Kansas, Maryland, Michigan, New Hampshire, Oklahoma, South Carolina, West Virginia, Wisconsin, and others.
The amount of these bonds varies from state to state and varies between $2,500 and $100,000, though most commonly the amount is somewhere around $10,000.
If a bonded agency is found to be in breach of the conditions of the bond, by having caused damages to their clients, the latter may file a claim against the bond to secure compensation. Such compensation is typically initially extended by the surety and may be as high as the full amount of the bond, also known as its penal sum.
Wondering why you need a bond, and how it works? See our ‘What is a surety bond’ guide for full overview and explanation of what surety bonds do and why business needs them!
See below for more information regarding the cost of this type of bonds, what may give rise to a bond claim, and how to get your bond.
Call us anytime at 866.450.3412 if you’d like to know more about this bond or need help with your bond application!
Security Guard Agency Bond Cost
The cost of getting bonded is a fraction of the total amount of the bond required in your state. This fraction, or rate, is determined by the surety you apply with on the basis of your credit score. At times, other financial factors may also be taken into account, such as your financial statements, and even your personal resume.
The higher an applicant’s credit score, the lower their bond rate will be. For example, applicants with a FICO score of 700 or more can expect to get the lowest possible rates on their bond, typically between .75% and 1.5% of the total bond amount.
To get a quick estimate of the cost of your security guard agency bond, try our bond calculator or the table below for a specific state bond amount.
Surety Bond Cost Calculator
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|Security Guard Agency Bond||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Oklahoma (unarmed guards)||$5,000||$100||$100-$125||$125-$250||$250-$375|
|Kansas, South Carolina, Oklahoma (armed guards)||$10,000||$100-$150||$100-$250||$250-$500||$500-$750|
Bad Credit Bond Program
While a high personal credit can secure you low rates on your bonds, applicants with low credits can also get bonded!
Thanks to our great surety partners, we have been able to create our Bad Credit Program. Through this program we can offer bonds to applicants that have low scores but want to get bonded and develop their business.
Rates under the program are higher than for applicants with better scores. Yet, by improving your credit score, you are eligible to get increasingly better rates when applying for a new bond at a later time.
You can learn more about getting such a bond by visiting the program page!
Claims Against This Bond
Security guard agencies across the country must comply with varying licensing and business requirements in each state. Generally, though, this bond is required to guarantee that licensed agencies will conduct business according state laws and in compliance with best business practices.
For example, if a guard belonging to an agency is found to have committed theft while performing security services for which they were contracted, the person suffering a loss or damages may file a claim against their bond. In other states, in which guard licenses are for armed or unarmed guards, carrying a gun while being licensed as an unarmed security guard may also give rise to a claim against the agency bond.
In any case in which a claim is filed against a security guard agency bond, the surety backing the bond will investigate the issue. If the agency is found to have breached to conditions of the bond, the surety will typically extend compensation to claimants. Such compensation may be as high as the full amount of the bond.
Once a claim is covered by the surety though, the bonded agency will need to reimburse the surety in full for any coverage it has extended. This is a standard condition in every surety bond agreement. To avoid having to cover a claim and the big financial and reputational repercussions that follow from it, it is advised that bonded agencies comply with the conditions of their bond at all times! This is the safest way to steer clear of surety bond claims.
Apply for Your Bond Here!
Get started with your bond application or simply request a free quote by completing our bond form.
We will shortly contact you with your quote, along with full details on continuing the bond application process. Once we have your completed application, it will take about two working days for your bond to be issued. We will then mail it to you via standard mail and email.
Get in touch with us at 866.450.3412 to speak to our experts and find out more about this bond.