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Talent Agency Bond Claims Guide



Talent Agent Bond

A Talent Agency Bond is required in certain states to protect the public from an agency’s wrongful actions. 

Jet Insurance Company is a third party that provides a guarantee of payment to injured parties for claims covered under the Talent Agency Bond. However, Jet will check whether claims allegations are legitimate before paying out any claims, making sure that talent agencies bonded with us don’t receive false allegations. 

How to Avoid Talent Agency Bond Claims 

Talent agencies must comply with licensing requirements and with any applicable legislation to fulfill the terms of the Talent Agency Bond. Claims can come from anyone who is injured by the talent agency’s misconduct or violation of their obligations; an employee’s actions would be within the realm of the talent agency’s liability. 

Claims must be submitted within the bond’s active period, meaning before it is cancelled, terminated, or expired. A cancellation period (often 30-60 days) is still included in the liability of the bond, so claims can be filed during this time as well. The Talent Agency Bond covers the agency’s misconduct during the bond’s active period, up to the bond limit. Multiple claims can be submitted, given that the accumulation of claims doesn’t exceed the bond limit. 

Talent Agency Bond Claim Process

Let’s go over what would happen when a claim is filed. There are four main aspects of the claims process: 

  1. Complaint
  2. Investigation
  3. Judgment
  4. Indemnification
Talent Agency Bond Claim Process

As an example, let’s use a fictional talent agency called ‘You’re a Star!’, owned by Holly Wood in the State of Florida. Holly’s client, Tom, paid Holly to help find him an acting job. Tom went to auditions but ultimately wasn’t chosen for the part. Tom demands a refund from Holly for the fees he paid in full, and legally, Holly must repay Tom since he wasn’t hired for the job. 

Step 1: Complaint 

If a client suffers financial damage because of the talent agency’s misconduct, the client can take action for recovery. This can be civil action or action on the Talent Agency Bond, depending on the terms of the bond form in that state. 

Holly isn’t able to provide a refund to Tom, so he takes action on the bond. 

Step 2: Investigation

If a claim is filed on the Talent Agency Bond, an investigation into the accusation will commence. Investigation can be carried out by the surety company, the obligee, or perhaps via a civil court. 

When Tom files a claim against Holly’s Talent Agency Bond, Jet Insurance Company will notify the Department of Business and Professional Regulation (the obligee). Jet will check any available evidence to verify whether the claim is legitimate or whether there is a way that Holly can alleviate the offensive action. 

Step 3: Judgment

After the investigation is complete, if the talent agency is found to be in violation of licensing obligations or state legislation, corrective action will be prescribed. If the violation is covered under the terms of the bond, the surety company must pay the claimant. 

If Jet has finished the investigation and determined that Holly was in violation of the bond terms, Jet will have to compensate Tom. 

Step 4: Indemnification

The talent agency will be obligated to repay the surety company in the amount of the claim payout. Failure to restore the bond will often result in license suspension or revocation. 

After Jet pays Tom, Holly can’t just ride off into the sunset. She will need to repay Jet the amount that was paid out so that she can restore her bond and keep her license as a talent agent. 

Bond InformationLegislative Documents
FloridaFlorida Statutes
SAG-AFTRA’s Codified Regulations