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Employment Agency Bond

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An employment agency bond, also known as a staffing agency bond, is a license and permit surety bond required by government entities for agencies that charge fees to assist with job placement.

Key Highlights

  • Also called a staffing agency bond. 
  • Guarantees the agency will fulfill its contractual commitments to job seekers or employers. 
  • Required for any business charging fees for employment services. 

How do I purchase an employment agency bond?

NFP, the nation's largest and most reliable surety company, is authorized to issue employment agency bonds in each of the 50 states. We can provide the best rates for your bond, as well as the fastest issuance, to get your business off and running.

Our short online application makes it easy. Click below to start the application process today.

Employment Agency Bond FAQs

An employment agency bond ensures that an agency delivers the employment services promised under contract. It protects job seekers and clients from financial loss if the agency engages in fraud, misrepresentation or fails to fulfill contractual obligations.

Any business that charges a fee to help people find permanent positions, temporary staffing assignments, executive roles or home care jobs may be required to carry this bond. Licensing requirements vary by state, so it is important to verify with your local authority.  

  • Businesses that need an employment agency bond can include: 
  • Permanent placement agencies that help candidates find full-time jobs in various industries. 
  • Temporary staffing firms supplying short-term workers for offices, manufacturing, or events. 
  • Executive search services specializing in recruiting senior management or C-suite executives. 
  • Home care placement agencies that match caregivers with individuals or families 
  • Modeling or entertainment talent agencies arranging auditions and contracts. 

Bond amounts typically range from $500 to $50,000, depending on your jurisdiction and business model.  

Premiums are usually between 0.5% and 5% of the bond amount. Costs can be influenced by: 

  • Bond amount required in your state. 
  • Credit profile and history. 
  • Financial health of your business. 

If an employment agency commits fraud or fails to meet obligations, claims can be filed against the employment agency bond. The surety pays out valid claims, while the agency must reimburse the total amount to the surety, protecting job seekers and employers from financial loss. 

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