Security Guard Agency Bond

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What is a Security Guard Agency Bond?

If you plan to operate a business as a security guard agency, chances are you will need to obtain a license to do so. In several states, part of the licensing process involves obtaining a security guard agency bond. This type of license bond works to protect parties that interact with your security guard agency, and it ensures you comply with legal licensing requirements under state laws.

A security guard agency bond functions like other surety bonds in that it is an agreement between three distinct parties. You are the principal, or the business or individual purchasing the bond, and the obligee is the state or local agency requiring a security guard agency bond be put in place. A surety agency provides you access to the bond. When a claim is made to cover damages or financial losses due to a failure to operate in compliance with the law, the bond provider pays the claim and the principal repays the claim amount.

What Does a Security Guard Agency Bond Cost?

The cost of a security guard agency bond varies for each licensed security guard agency. This is because each state that requires a bond for the licensing process may have a different surety bond amount that must be in place. In some cases, a security guard agency bond of $5,000 may be necessary, while in other states, a bond of $25,000 is required. The amount of the bond plays a role in the price you pay.

In addition to the amount of the bond, the price for a security guard agency bond depends on your personal credit and business financials. If you do not have a healthy credit score or the business has minimal assets and high liabilities, the price you pay for a bond will be higher. Typically, the cost for a security guard agency bond ranges from 1 to 5% of the bond amount required.

How Do I Get a Security Guard Agency Bond?

If you are in the licensing process for starting a security guard agency, you can easily submit a request for a quote using a brief online form. This allows you to see what the cost of your security guard agency bond will be.

Frequently Asked Questions

How much does this bond cost?

The cost is usually 1 – 10% of the bond amount. Keep in mind that pricing varies based on the bond amount, and your financial strength.

What is the process?

Apply and get approved on our website, sign the surety agreements, and we will ship the bond out. If you would like to learn more about what surety bonds are and how they work, you can read our detailed guide here.

Can I get this bond with bad credit?

Yes, it’s possible, but bad credit usually results in higher rates.

What if a false claim is filed?

You must contact us immediately, as we have a team of claim specialists here to find a resolution for you. Keep in mind, it is crucial that you work with an expert in the surety industry. Learn more about how to ensure you choose the proper bond company.

Are you looking for a different type of bond?

You can take a look at our full list of license and permit bonds.

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