What is a talent agency bond?
Talent agency bonds are legally binding agreements between three parties: talent agencies, the government agency responsible for regulating local talent agencies, and a surety company.
The government agency is the Obligee and establishes the obligations that the talent agency (the Principal) must follow. The surety (also called bonding company) issues the bond guaranteeing the performance of the talent agency.
Why do you need a talent agency bond?
Talent agency bonds are required in some states before being eligible to obtain a license to operate a talent agency. Some states where you need a surety bond include California, Florida, and Texas.
When the surety company issues the bond, they provide the government agency a guarantee that the customers (musicians, models, actors, writers, authors, movie makers) of a licensed talent agency will receive payment for financial losses resulting from a violation of the statutes and regulations set forth by the talent agency license.
If the talent agency fails to meet the obligations set out by the government agency, the surety will pay out any damages up to the bond amount. The talent agency is ultimately liable for the losses and is legally required to reimburse the surety company for any damages paid under the bond.
How much does a talent agency bond cost?
Talent agency surety bond costs vary depending on the total bond amount and the premium rate. The government agency sets the required bond amount and the surety company determines your premium rate, which is the percentage of the total bond amount you pay as the premium.
Premium rates for talent agency bonds usually cost between 0.75% and 4% of the total bond amount. Most talent agency bonds require a credit check but the surety company ultimately decides how to underwrite the bond.
During the application process, the surety company may evaluate your credit score, financial strength, and industry experience. Applicants with good credit generally receive the lowest rates, however, bad credit will not prevent you from securing a talent agency bond. EZ Surety still offers competitive rates to individuals with low credit scores or other financial issues.
Below are the lowest premiums EZ Surety has issued for talent agency surety bonds.
- EZ Surety has issued talent agency bonds in the State of Florida for premiums as low as $175.