- Licensed in MD, PA, VA, OH and FL
- Electronic bond delivery when available
If a union, benefit fund, or collective bargaining agreement requires you to post a union wage and welfare bond, send us the requirement. We’ll check the bond form and amount and tell you what the surety needs for a quote.
A union wage and welfare bond, also called a union fringe benefit bond, is a surety bond that guarantees an employer will make the contributions required by a collective bargaining agreement or trust agreement to union benefit funds, such as health, pension, or training funds.
The collective bargaining agreement, trust agreement, or the fund’s rules usually set the amount, and it may be tied to expected contributions. Use the amount in your agreement or the fund’s letter.
If you think the amount is wrong for your business, take it up with the fund. We bond what the agreement requires.
No. A wage and welfare bond guarantees that the employer pays required contributions. An ERISA fidelity bond protects an employee benefit plan against loss from fraud or dishonesty by people who handle plan funds.
Some businesses need both. If you are not sure which one a fund or plan advisor is asking for, send us the request.
The surety wants to know whether the employer is likely to keep up with its contribution obligations. It may look at credit, financial statements, business history, and payroll or contribution records.
Larger bonds usually need more financial information.
You normally pay a premium for the bond, not the full bond amount.
The price depends on the bond amount, your credit and financial information, your business history, and the surety company. Larger bonds can need more underwriting.
It depends on the bond amount and the surety company. Many are credit-based, and larger bonds may also need financial statements.
If credit is an issue, tell us up front. Options can differ from one surety company to another.
Send us the agreement language or the fund’s request. The most useful items are:
It depends. Straightforward union bonds can often be issued quickly when the agreement, form, and applicant information are complete. Larger amounts or credit issues can take longer.
If the fund or union gave you a deadline, tell us when you apply.
If this is not the bond you were asked for, these pages may help.
The requirement usually comes from your union agreement or fund, not from the state. Terms differ from one fund to the next.
Send us the agreement language or the fund’s letter. We’ll tell you what we need next.
The Bond Agent | 3655A Old Court Rd, Suite 13 | Baltimore, MD 21208
