Telemarketing Bonds

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Bonded telemarketers talking with a consumer on the phone

What are telemarketing bonds?

A telemarketing surety bond holds professionals working in the telemarketing industry accountable to industry rules and regulations. You will likely need this bond before becoming licensed in your state or renewing your business license. 

Also called “phone solicitor bonds,” telemarketing bonds help reduce harassment and unprofessional behavior on the part of sales representatives speaking with consumers over the phone. They protect consumers and the government if telemarketers ignore or overlook applicable laws.

Get Your Telemarketing Bond:

Quick Takeaways

  • A telemarketing surety bond holds professionals working in the telemarketing industry accountable to industry rules and regulations. 
  • If you break a rule or regulation of your telemarketing license, someone could file a claim against your bond. 
  • The only states that exclude this bonding requirement are Colorado, Alaska, and Connecticut. 
  • Most states require bonds ranging from $25,000 to $50,000.

How do telemarketing bonds work?

Telemarketing bonds are legally binding agreements involving three parties:

  • Obligee: The governing agency requiring the bond
  • Principal: The telemarketing business or individual purchasing the bond to guarantee compliance with industry laws and regulations
  • Surety: The company that underwrites and issues the bond, promising to back it financially in case of claims

If you break a rule or regulation of your telemarketing license, someone could file a claim against your bond. For example, if you call a customer listed on the “do not call list,” they could file a complaint and receive compensation.

Ensure you understand your state’s telemarketing regulations to avoid costly claims. They’re not only expensive but can damage your reputation and ability to get licensed and bonded again in the future.

Who needs a telemarketing surety bond?

Most states require telemarketers and solicitors to post and maintain a telemarketing surety bond. The only states that exclude this bonding requirement are Colorado, Alaska, and Connecticut. Other factors – like where you acquire call lists, what you sell, and how you dial phone numbers (autodial or manual) – may also influence whether you need a bond to operate legally.

Keep in mind that you will need a separate bond (and license) for every state you direct calls to. For example, if you’re calling consumers in Iowa, Minnesota, Missouri, and South Dakota, you will need to purchase four surety bonds.

Frequently Asked Questions

The cost of your bond will depend on the amount required in your state. If you work in California, for example, you may need a $100,000 bond. You will pay a small percentage of the amount required as your premium. 

Your premium rate will depend on various factors, including your credit score and type of solicitation. Some markets are riskier than others, resulting in higher premium rates. Using the California example, you could pay as low as 1% – or $1,000 annually – if you have excellent credit.

Most states require bonds ranging from $25,000 to $50,000, while others can be as low as $10,000. Contact ZipBonds if you’re unsure of your specific requirements.

You can usually still get bonded if you have a low credit score. However, you may have to pay a higher premium – upwards of 5-10% of the bond amount. The best way to earn better premium rates is working toward raising your credit score over time.

Contact ZipBonds if you have any questions or concerns about your bond rate. Just call (888) 435-4191 to speak with an agent.

Telemarketing bonds are typically valid for one year and then must be renewed. Renew your bond before the expiration deadline listed on your bond form. Most, but not all, states require telemarketing bonds. Alaska, Connecticut, and Colorado are excluded.

Apply for Your Telemarketing Bond

ZipBonds offers the fastest and most secure option for getting the surety bonds you need. Our all-digital platform is intuitive and straightforward. Apply today online or call us at 888.435.4191 to speak with an agent.

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About ZipBonds.com

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.