West Virginia Professional Employer Organization Bond
Obligee Info:
State of West Virginia Office of the Insurance CommissionerPO Box 50540
Charleston WV 25305-0540
Cancellation Period:
60 days
Limit:
$0 - $999,999
Credit Check Required?
Yes
Businesses are required to file a bond with the (the "Obligee") to activate their license. The bond protects the Obligee by transferring to a surety bond company the cost of ensuring the public is compensated for damages resulting from a licensed business breaking licensing laws.
How much does the West Virginia Professional Employer Organization bond cost?
West Virginia Professional Employer Organization bonds typically cost between $500 - $6,250.
Is a Credit Check Required for West Virginia Professional Employer Organization Bonds?
Credit checks are required for the West Virginia Professional Employer Organization Bond.
Why is the West Virginia Professional Employer Organization bond required?
Businesses are required to purchase and file a bond with the to activate their license. The bond protects the Obligee by transferring to a surety bond company the cost of ensuring the public is compensated for damages resulting from the failure of a licensed business complying with the provisions of licensing laws.
How does the West Virginia Professional Employer Organization bond work?
West Virginia Professional Employer Organization bonds must be issued by an insurance carrier admitted by the West Virginia Department of Insurance. The insurance company issuing any surety bond, such as the Professional Employer Organization bond, will also be referred to as the "surety company" or the "bond company". The business is referred to as the Principal, the surety bond company as the Obligor and the as the Obligee.
The surety company provides the Obligee a guarantee (the surety bond) that the customers, vendors and employees of a licensed business will receive payment for financial damages due to a violation of licensing law up the bond amount stated on the bond form ("penal sum"). The bond company also directly receives claims from the public and determines the validity of claims. Ultimately, the licensed business owners are responsible for their actions and required by law to reimburse the surety company for any payments made under the bond or face indefinite license suspension.