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Telemarketing Bond

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Description: Many states require Telemarketing Bonds to be filed phone solicitors' licenses. The bonds guarantee that the telemarketer will operate within the guidelines of the state in which they are calling.

Current Market: Currently, bonding companies are wary of writing telemarketing bonds due to the many changes to law that state governments have legislated against the telemarketing industry. The sureties had three main worries: 1) The abundance of new laws could create confusion within the industry with what is and is not permitted, thus creating a higher than normal claim percentage throughout the country. 2) The stiff fines associated with the new laws could easily put a telemarketer out of business if they accumulated too many too fast. 3) The new rules would make it too difficult for the average phone solicitor to operate, thus increasing their risk due to less stable business financial statements.

The surety industry's concerns for phone solicitors resulted in higher rates throughout the country. The standard market for telemarketing bonds can be 3-5x the rate of other less risky commercial bonds. On the bright side, high risk telemarketing bond applicants can expect to see the same rates as other commercial bond applicants placed in a high risk market.

Special Programs: The surety industry will take some time prior to setting up specialty programs for standard market phone solicitors, as they are still analyzing how the changes in laws have effected the risk of the bonds for each state. However, bad credit specialty programs are available for those who do not qualify under standard surety markets.

*Quotes are given immediately online when possible. Some circumstances require an application to be reviewed by an underwriter.