California Voluntary Unemployment Plan Guarantee Bond
Bond Requirements & Set Rates
| Bond Amount Required | Annual Premium |
| Varies | Varies |
Employers in California who choose to offer a voluntary plan (VP) for unemployment compensation disability benefits in place of the state-run SDI program must secure a surety bond. Required by the California Employment Development Department (EDD) under Part 2 of the Unemployment Insurance Code, this bond guarantees employees will receive all benefits owed under the voluntary plan and protects against an employer’s failure to meet its financial obligations.
Cost of the California Voluntary Plan Guarantee Bond
The cost of a California voluntary unemployment plan guarantee bond is typically a small percentage of the bond amount. Get a free quote for your voluntary plan bond today.
Why You Need a Voluntary Plan Guarantee Bond
A California voluntary plan guarantee bond ensures employees receive the benefits they are legally entitled to even if the employer cannot fulfill its obligations. It provides a financial safeguard that supports compliance with the California Unemployment Insurance Code regarding self-insured voluntary disability plans.
This surety bond involves three parties:
- Principal: Employer offering a voluntary disability plan
- Obligee: California Employment Development Department
- Surety: Bonding company issuing the bond
If the employer fails to pay the required benefits, a claim can be filed against the bond. The surety may compensate affected employees up to the bond amount, and the employer is responsible for reimbursing the surety for any claims paid.
How to Get a California Voluntary Unemployment Plan Guarantee Bond
Follow these steps to secure the voluntary plan guarantee bond:
- Complete this online application with your business and plan details.
- Receive an instant quote based on the required bond amount.
- Pay the premium to activate the bond.
- Download your bond and submit it to the California EDD for approval.
With NNA Surety, you can expect a streamlined process, responsive support, and access to top-rated bond carriers.
Apply for Your California Voluntary Plan Guarantee Bond
Get your California voluntary unemployment plan guarantee bond quickly and keep your benefits program compliant. Call 855-339-6183 to speak to our team for more information, or complete this form to get started.