Telemarketer Bond

A telemarketer bond, also known as a phone solicitor bond, is a surety bond required for telemarketers. The bond is mandatory in most states. These states have established licensing processes for telemarketers to protect the public because the telemarketing industry has been associated with unprofessional sales techniques. The telemarketer bond protects the public from fraudulent or excessive telemarketing behaviors, such as the illegal use of customer data and calling without solicitation. The bonded amount ranges from $10,000 to $100,000+ and is determined by each state’s laws and regulations. Pricing for telemarketer bonds will vary for each business, but our price for a $10,000 bond starts at $150.

PA Telemarketer Bond Form Example
PA Telemarketer Bond Form Example

How much does a Telemarketer bond cost?

The cost of a telemarketer bond will be a percentage of the total bonded amount. Each state’s government determines the total amount of its bond. In many states, such as Pennsylvania and Ohio, the bonded amount will be $50,000, but other states, such as West Virginia, require a $100,000 telemarketer bond. Usually, the bonded amount will be between $25,000 and $50,000, but it can be as high as $500,000 if you operate multiple locations in West Virginia. Some states like Maine, Oklahoma, and Texas only require a $10,000 telemarketer bond, so we recommend confirming the amount you’ll need before starting an application.

Once you’ve determined a bond amount, you will pay a percentage of that to get the bond. This is known as a premium. Surety companies consider various factors to determine the premium amount you will pay. The main factors for your premium are your credit score, industry experience, and, for more significant bonds, your financial standing and your business. Your credit score will have the most significant impact from these factors. If you have a high credit score, you can expect to pay around 1-3% of the total bonded amount, and people who have lower credit scores could pay over 4% of the bonded amount if approved. 

We work with over 10 insurance partners with unique underwriting, so we can always offer you the best rate on the market. 


Telemarketer Bond FAQs

Who needs a telemarketer bond?

Telemarketers or a business entity making unsolicited calls intending to sell to customers in certain states will need to get a telemarketer bond for their license. It’s important to note that the license is required if you will be calling customers in that state, so even if you are based in a state that does not require a telemarketing license, if you are calling customers in a state that requires it, you’ll need to purchase a bond. At this time, the following states have regulations about telemarketers and require them to register. The following states have a telemarketer bond requirement: 

  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • California
  • Connecticut
  • Delaware
  • D.C.
  • Florida
  • Georgia
  • Idaho
  • Indiana
  • Kentucky
  • Louisiana
  • Maine
  • Mississippi
  • Nevada
  • New Jersey
  • New York
  • North Carolina
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Dakota
  • Texas
  • Utah
  • Vermont
  • Washington
  • West Virginia
  • Wisconsin
  • Wyoming

How do I get a telemarketer bond?

Getting a telemarketer bond is a straightforward process that can be completed on the same day. In the application process, you must provide your contact information, business information, and social security number for a soft credit check. We can hear back from our insurance partners about 24 hours after an application is submitted, and we can usually hear back even faster! Once we have received your quote, we will reach out to go over this quote, and if it works for your business, we can accept payment over the phone or through a payment link. We’ll send you a copy of your bond once we’ve received payment, and you can continue with your licensing process.

What if I work in multiple states that require a telemarketer bond?

A telemarketer bond is required in each state that a telemarketing business will call customers in. If your business will be calling customers in multiple states, it’s important to check the regulations regarding telemarketers in the states where the customers are located. For example, if your business is located in an unregulated state but calls customers in regulated states like Florida and Georgia. A telemarketer bond will be needed in Florida and Georgia, even though the business is in an unregulated state. The process for each bond is the same, and the premium rate paid should be consistent, even though the bond amount may change. If you’re unsure if you’ll need multiple bonds, call us, and our team will be happy to help you figure this out.

How can I avoid a claim on my Telemarketer bond? And what is the claims process?

A claim can be filed on your telemarketer bond if you do not follow the laws and regulations in the states you call customers in. These laws and regulations will differ for each state, so it’s essential to be familiar with each state’s laws before beginning your work there. In general, avoid unethical practices such as misusing customers’ information, fraudulent acts, or calling customers after legal calling hours to avoid claims being filed on your telemarketer bond.

If a claim is filed, your surety company will investigate the claim and may also contact you for any additional information about the claim. The surety company will pay the affected parties up to the bonded amount if the claim is valid. It’s important to remember that bonds differ from insurance, and after a bond claim has been paid out, you, as the bond principal, must pay back the total amount of the claim to the surety company. If you do not pay the claim back, you may have difficulties getting bonded and may not be able to continue your telemarketing business.