What is an Athlete Agent Bond?
Throughout the country, many states require individuals who represent athletes professionally to hold a license as an athlete agent. Getting a license for this type of business includes posting an athlete agent bond. This type of surety bond protects athletes and their interests. Athletes who suffer financial losses or damages due to an agent’s negligence or violation of state laws can submit a claim against an athlete agent bond.
An athlete agent bond works like other surety bonds as a three-party contract. The surety company provides the bond to the licensed athlete agent who is known as the principal. The obligee is the state agency requiring an athlete agent bond.
What Does an Athlete Agent Bond Cost?
The requirements for athlete agents differ from state to state, including the amount of an athlete agent bond that must be in place. The dollar amount of the bond dictates its price because the cost is calculated as a percentage of this amount. Athlete agents may be required to have a bond between $10,000 and $50,000 depending on state guidelines, and the price can range from 1 to 10% of the total bond.
In addition to the amount of the bond, the price you pay for an athlete agent bond depends on your personal credit. Surety companies offering athlete agent bonds need to review your financial track record to determine how much of a risk you pose as a bondholder. Bad credit can lead to paying more for an athlete agent bond.
How Do I Get an Athlete Agent Bond?
Securing your athlete agent bond is a simple process. You submit an online application providing personal and business details, and the surety company provides a fast quote for your athlete agent bond based on the total bond amount and a review of your credit.