In the call center industry, it is critical that you stay compliant and abide by the industry rules and legislation. As part of staying compliant, some states legally require you to purchase a surety bond (also known as a phone solicitor bond). This is to ensure that if you are ever in violation of a law, the state in which you made the violation can collect damages and award the damages to those who were harmed. Consider it similar to an insurance policy that provides protection to the state and consumers that are called.

How Do I Know If I Need A Telemarketing Bond?

Although it varies from state to state, you generally need to purchase a telemarketing bond if you will be calling individuals or business within the state. For example, if you call consumers in the state of Georgia and Florida, you will need to purchase a bond for both states. Some states do not require a bond at all, but you should always consult with an attorney before beginning your calls – you could be subject to fines if you violate any of the telemarketing laws or regulations.

Other factors that may require you to purchase a bond:

• What products are services you sell
• Whether or not you will be dialing numbers manually or using and autodialer or predictive dialer
• The volume of calls you intend to make (typically in a month or week timeline)
• How you obtained the phone numbers you will be calling
• Whether or not you have prior consent from the parties you are calling

It is also possible to obtain a bond exemption depending on your situation, but determining if you are eligible for an exemption is best left up to an experienced legal professional.

How Much Does A Telemarketing Bond Cost?

Bonds range from $25,000 to $500,000, depending on the size of your facility and the number of other factors mentioned above. You will need to make annual premium payments (usually with 1-5% of the total bond amount) which again depends on your financial situation and size of your business. If you have excellent credit, you will probably pay less that someone who doesn’t have as good as credit, or no credit at all.

If I have bad credit, am I automatically disqualified from obtaining a bond? 

• Not necessarily. You can still (depending on the state) purchase a bond through a irrevocable letter of credit, a co-signer, or other options depending on your financial situation.

Where Can I Purchase A Telemarketing Bond?

Bonds are available at most insurance companies (some even specialize in telemarketing bonds). You should always reach out to multiple insurance agencies in order to get the best price. You should also ensure that you need a bond before you purchase one – make sure that you are not eligible for an exception or exemption. An insurance agent may be able to assist you with this process.

Additional Bond Information

Telemarketing bonds are usually only valid for one year from the purchase date. Depending on the state, you may be eligible for a pro rated discount if you purchase the bond halfway through the year, so you won’t need to purchase the whole bond amount if you start your business halfway through the year. Again, this depends highly on the state you are operating out of and will be doing business in.

Telemarketing Surety Bonds – Everything You Need To Know