What is an athlete agent bond?
An athlete agent bond is a contract between a surety provider, an athlete agent, and a state agency. Getting bonded is part of the licensing or registration process to become a professional athlete agent in certain states.
An athlete agent is often responsible for negotiating contracts between teams and athletes, handling contract negotiations regarding sponsorships, and managing marketing and promotion. The surety bond protects athletes from suffering damages due to an agent violating the law or contract.
Get Your Athlete Agent Bond:
- An athlete agent bond is a contract between the surety provider, an athlete agent, and a state agency requiring the bond.
- Getting bonded is part of the licensing or registration process to become a professional athlete agent in some states.
- Athlete agents could pay a premium ranging from 1-10% of the total bond value.
- If an athlete agent violates the law and harms an athlete financially, the athlete can file a claim on the agent’s surety bond.
How do athlete agent bonds work?
An athlete agent bond is a three-party agreement involving:
- A principal: An athlete agent who needs the bond
- An obligee: The state department requiring the bond
- A surety: The company that underwrites the bond
If an athlete agent violates the law and harms an athlete financially, the athlete can file a claim on the agent’s surety bond. If the claim is deemed valid after the surety investigates it, they may compensate the athlete for their losses up to the total bond amount. The athlete agent will then be indebted to the surety and expected to reimburse them.
To avoid a costly claim on your bond, make sure you understand your state-specific laws and regulations regarding your industry.
What does an athlete agent bond cost?
The cost of your bond will depend on where you live and the amount you need. You will pay a percentage of the total bond amount. Often, athlete agents will pay between 1-10% of the bond value. So if you need a $30,000 bond, you might pay anywhere from $300 to $3,000 for your premium.
If you have a lower credit score, you may still be able to obtain the bond you need for a higher premium.
The following states may require you to obtain a bond to work professionally as an agent athlete.
- North Carolina
Apply for Your Bond Today
ZipBonds is the fastest and most secure way to get the bond you need at an affordable rate. We take out the pain of long, complicated applications. In fact, most of our bonds are approved and processed immediately.
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.