Union Bond Overview
The union bond is another name for a wage and welfare bond, and is considered a financial guarantee commercial surety bond. The bond ensures an employer's contribution to welfare funds, including payment of wages. It is required by unions whenever an employer has hired employees whom а union represents.
The union bond protects employees in the way that if their employer should fail to comply with their obligations as stated in the bond, a claim against the bond can be filed.
This bond is considered a risk, due to the nature of a financial guarantee, and therefore commands higher rates than the average bond. Though many sureties shy away from these types of bonds, Bryant Surety Bonds, through its working relationships, has the ability to issue this bond at a savings to you.
Typically, if you have poor credit, or are new and have no credit, you’ll have a difficult time obtaining this bond. But through our bad credit program, you can still get bonded under certain circumstances.
Union Bond Cost
Union bond cost is not straightforward, as it depends on the exact type of union bond. There are certain minor differences between union bonds, and cost also depends on the union representing the workers and the bond amount it is requesting.
Furthermore, since wage and welfare bonds are financial guarantee bonds this means that many sureties will require bond obligees, i.e. employers, to post full collateral in the amount of the bond when obtaining one. This is so because of the higher risk involved in underwriting such bonds and because of a history of claims made against union bonds.
Despite this, sometimes it may be possible for businesses to get a union bond without posting collateral. When determining the premium rate or cost of your surety bond, sureties will usually look at your personal credit score. Applicants with high credit scores, a union good guy letter, and strong financials often receive lower rates, between 1%-4% of the total bond amount.
This is even more applicable when speaking of union bonds. Unless you have a long relationship with a certain surety and have previously obtained bonds from them, you will probably not be given the option to only pay a premium without the collateral. If your business and financial statements are very strong and orderly though, you may be able to secure a union bond without posting full collateral.
The rate you are offered and whether you will have to post collateral or not is also determined by the company you work with. By working with Bryant Surety Bonds you are sure to be offered the best possible bond at the lowest possible rate. All of Bryant Surety Bonds’ partners are A-rated and T-listed surety bond companies, and through them we are able to secure exclusive rates even for union bonds.
Check out our detailed surety bond cost page to understand how surety bond cost is formed and which factors influence it the most!
Bad Credit Union Bond Program
We are able to underwrite union bonds also for applicants with bad credit or with no credit. Our Bad Credit Surety Bond Program makes it possible for such applicants to apply for a variety of bonds which would otherwise be inaccessible to them.
Given the nature of union bonds it may be difficult for you to get a union bond with bad credit without having to post collateral.
Rates under our bad credit program are higher, between 5%-20% of your bond’s amount, because there is an increased risk in issuing such bonds. Despite this, we always make sure to offer the best possible rate we can get to all our applicants!
How to Get Your Union Bond
To get started, simply apply online through our online form. Due to union bonds being financial guarantee bonds, applications may take slightly longer than with other bonds. As soon as we have reviewed your application we will contact you with a free quote on your union bond.
If you have questions about your union bond or would like to consult with us before applying, give us a call at 866.450.3412. Our surety bond experts are here to speak to you and can give you precise answers to all your questions. We will be happy to hear from you!