Florida Telemarketing Bond
What is a telemarketing surety bond?
Telemarketing license requirements vary by state, but in almost all cases, phone solicitors or call centers must have a telemarketing surety bond in every state to which they place calls.
Alaska, Colorado, and Connecticut are the only three states that do not require professional solicitors to obtain this surety bond in order to conduct business.
Telemarketers located in Montana, or placing calls to the state, may refer to this bond as a "telemarketing registration bond."
How does a telemarketer bond work?
Surety bonds encourage telemarketers to do two important things at the same time:
- Follow both state laws and industry regulations within each state that they operate.
- Protect the public from solicitors who violate these regulations or who engage in fraudulent practices.
A telemarketing bond works by acting as a legal contract between three parties:
- The principal, who is the telemarketer or call center.
- The obligee, who is the local, county, state, or federal authority requiring the surety bond.
- The surety, who is the company that issues the bond to the telemarketer.
Should you (the call center operator) violate a law or regulation or commit a fraudulent act, a claim can be made against your bond and claimants can be compensated.
How much does a telemarketing bond cost?
The price of a telemarketing bond will depend on your bond's liability amount. It is important to note that different states will require varying bond amounts that can range anywhere from a minimum of $10,000 in Texas to as much as $100,000 in states like California.
Individuals or companies seeking this surety bond policy can maintain the surety bond by paying an annual fee. This is called the bond's premium.
Premium rates may vary based upon your credit and can range from 1% to 15% of the total bond amount. NNA Surety Bonds offers telemarketing bonds in several states with premiums as low as $500.
Below is a list of states for which NNA Surety Bonds currently provides telemarketing surety bonds.
Cost of Telemarketing Surety Bonds
| State | Bond Amount | Cost (Annual Premium) |
|---|---|---|
| Florida | $50,000 | $500 |
| Montana | $50,000 | $500 (two years) |
| Kentucky | $50,000 | $750 |
* Cost can vary depending on the bond amount required and your credit rating
Why do I need a bond for my call center?
You cannot legally act as a telemarketer without first acquiring a surety bond for each state in which you plan to operate.
Phone solicitor bonds are necessary because telemarketing regulations are often complex and vary across states. Surety bonds can help limit regulatory oversight and negligence in telemarketing practices while also protecting the general public from illegal or fraudulent practices.
Additionally, call centers frequently handle consumers' personal and financial information. Surety bonds help protect consumers in the event that telemarketers do not act ethically with their information.
What else should I know about this bond?
Not every state requires phone solicitors to be bonded. There are currently three states that do not require telemarketing surety bonds:
- Alaska
- Colorado
- Connecticut
It's also important to understand that telemarketers must be bonded within each state they plan to operate, and not only the state in which they are physically located. This means if your business places calls to multiple states, you will need to acquire a bond for each applicable state.
Additionally, most states make a distinction between companies that contact consumers as solicitors and companies that contact consumers as debt collectors. In the majority of states, debt collectors are exempt from telemarketing license requirements and do not need this particular surety bond to operate. They may, however, be required to have a collection agency bond.