What are Wage and Welfare Surety Bonds?
Wage and Welfare Bonds are financial guarantee surety bonds protect union members in the event that their agreed upon dues are not paid within a given period, and ensure that they are contracted in accordance with all applicable laws and regulations. These bonds also guarantee that the employer will make all necessary contributions to funds and provide promised benefit packages to employees of the union. If the principal (employer) fails to uphold its obligations under the bond’s terms, a claim can be filed with the surety company for relief.
If the claim is valid, the surety will pay up to the penal sum of the bond to resolve the claim. The principal is then responsible for reimbursing the surety for all monies paid out, including any attorney fees incurred by the surety in defense of the claim.
Who needs this Surety Bond?
Wage and Welfare Surety Bonds are required for companies that contract with labor unions for the services of their members. These bonds may also be referred to as a Union Bonds, Wage Fund Bonds, Wage and Fringe Benefits Bonds and a Welfare Fund Bonds.
How much are these Surety Bonds written for?
The bond amounts for Wage and Welfare Surety Bonds vary by union, as fees and offerings are case specific. Companies that contract workers from multiple unions will need to acquire a bond for each. Please contact the union you are working with for the specific coverage that they require.
How much do Wage and Welfare Surety Bonds cost?
Pricing for Wage and Welfare Surety Bonds varies. Your premium will be based on a number of factors, including:
- Amount of the Bond
- Personal Credit of the Business Owner
An underwriter will thoroughly review your application, and highly qualified applicants can expect to pay between 1% and 3% of the bond amount. Qualified applicants could pay as little as $500 annually for a $50,000 surety bond. To find out how much your Wage and Welfare Surety Bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I get a Wage and Welfare Surety Bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for Wage and Welfare Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants, regardless of how bad their credit is. Our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.
How do I purchase a Wage and Welfare Surety Bond?
The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7837 and one of our Underwriters will assist you in applying for your bond.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.