What is a Private Investigator Bond?
Private investigators in many states are required to have a valid license in order to operate their business legally. Part of the licensing requirement is posting a private investigator bond which is a form of security for both the public and the state licensing authority. A private investigator bond ensures that licensed professionals in the industry will abide by legal standards when working with clients, and they will comply with law enforcement requests when it is necessary to do so.
A private investigator bond involves three distinct parties: the principal is the private investigator posting a bond; the surety company provides the bond; and the obligee is the state’s licensing authority mandating a bond be in place. If a client experiences damages because a private investigator does not work according to local laws, a claim can be made against the private investigator bond.
What Does a Private Investigator Bond Cost?
Each state has its own requirements for licensed private investigators as far as the total bond amount that needs to be posted. It is helpful to check with your state or local offices to determine this amount, as it plays a role in how much you pay for a private investigator bond. The required bond can range from $2,500 up to $50,000, but you are not responsible for paying the entire amount. Instead, the surety company charges a percentage of the bond, often ranging from 1 to 10% of the total.
A private investigator bond may cost more for those who have a low credit score or adverse credit history. Because legitimate claims made against a bond are ultimately the responsibility of the private investigator, a review of personal credit is necessary. If you have had trouble in the recent past with a bankruptcy, court judgment, or tax lien, you may be seen as a higher risk to the surety and therefore, pay a higher percent for your private investigator bond.
How Do I Get a Private Investigator Bond?
You submit a brief application online to start the process of obtaining a private investigator bond. Once your application details are reviewed, the surety company provides a quote for the private investigator bond you need.