North Carolina Professional Employer Organization Bond

North Carolina Professional Employer Organization Bond

The North Carolina Department of Insurance (NCDOI) requires those who wish to provide services as a professional employer organization (PEO) to first be licensed. Under the license and state statutes, PEO businesses, such as human resource consulting firms, must obtain a Professional Employer Organization Bond.

Jet provides this bond as a guarantee to the NCDOI Commissioner that the professional employer organization will operate in compliance with applicable state laws, and if not, there will be restitution for those financially harmed by the organization’s unlawful actions.

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If you are looking to apply for or renew a professional employer organization license, Jet can have your bond ready in minutes and will even file it on your behalf!

What Is the Bond Amount and Price for the Professional Employer Organization Bond?

The Professional Organization Bond has a custom bond limit that is determined by the Commissioner of the North Carolina Department of Insurance. 

Jet acts as a direct surety provider, therefore our prices are based on a percentage of the custom limit and the personal credit of the applicant. We provide monthly and annual payment options as well as 2- and 3-year payment terms that include easy renewal procedures. All are great choices for organizations that must provide a bond to the NCDOI and have a smooth initial and renewal license application experience.

How Is the Professional Employer Organization Bond Filed in North Carolina?

The Jet team can take care of filing the bond for you! The North Carolina Department of Insurance requires the Professional Employer Organization Bond to be filed with the Financial Analysis and Receivership Division. The bond must then remain on file throughout the entirety of the organization offering professional employer services. Failure to do so will result in the revocation of the organization’s license. 

If you would prefer to file the bond yourself with the required professional employer organization license application and other paperwork, our online application allows you to select that option. The original bond form and all licensing paperwork should be mailed to the following address:

North Carolina Department of Insurance
Financial Analysis & Receivership Division
1203 Mail Service Center
Raleigh, NC 27699-1203

Why Is the Professional Employer Organization Bond Required by the Commissioner?

The North Carolina Department of Insurance mandates organizations offering professional employer services to be properly licensed and bonded before such services may legally commence. The NCDOI Commissioner defines professional employer services as an arrangement where employees of a licensee are assigned to work at a client company in which employee responsibilities are then shared by the licensee and the client company. Typically these services include human resource consulting, payroll and health benefits processing, or training and development services. The Professional Employer Organization Bond is required to acquire and maintain a license and ensures that organizations will follow all state law and license regulations. In cases of the licensee violating any of these regulations and causing financial damage to an employee or client company, the bond will act as a financial guarantee for losses ensued. 

How Does a Professional Employer Organization Licensee Avoid Bond Claims?

Licensee organizations are expected to follow all regulations pursuant to North Carolina General Statutes Chapter 58, Article 89A. The statutes are extensive, therefore the Jet team recommends organizations to read through them thoroughly in order to gain a full understanding of offering professional employer services. Failure to comply may result in various violation penalties such as a license suspension or revocation, civil penalties, criminal penalties, or the Commissioner may seek restitution through a bond claim on behalf of a harmed employee or client company. A few key actions that could cause a bond claim are listed below:

The Commissioner reviews and investigates all complaints received from the public. If the complaint is found to be valid, the Commissioner may choose to file a claim on behalf of the harmed employee or client company. It is in the best interest of the organization to resolve the problem directly with the complainant and the Commissioner before a penalty or bond claim is pursued. 

What Happens If a Licensee Receives a Bond Claim?

Immediately contact Jet upon notice of a bond claim! The Jet team will proceed with our own investigation after a review of all claim details and the Commissioner’s investigation has been completed. 

For claims that are proven valid, Jet will make payment of the claim amount up to the full bond limit within 30 days of receiving written notice to do so by the Commissioner. Ultimately, the organization licensee is responsible for their actions and must reimburse Jet for the paid-out claim. Failure to pay back a claim will result in future difficulties obtaining surety bonds, including the Professional Employer Organization Bond. 

How Does the Application Process Work With Jet?

The Jet team created a bond application that can be completed from the comfort of your home! Our online application for the Professional Employer Organization Bond will ask for general information such as business details and the licensee’s social security number. A soft credit check will be conducted in seconds to get an appropriate rate (don’t worry, it does not affect your credit score). Once the payment option has been chosen and completed, Jet will file the original bond form for you or mail it to the address of your choice for personal filing. You will also receive a copy for your records.

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Does the Professional Employer Organization Bond Need to Be Renewed?

Not with Jet! The offered monthly payment option eliminates the need for annual bond renewals. Payments will continue to come out of your preferred account until cancellation of the surety bond is requested. 

For licensees who choose an annual or multi-year payment option, the Jet team will send you a renewal invoice prior to the bond term’s expiration date. Jet requires no additional paperwork, payment is all that is required!

Can I Cancel My Professional Employer Organization Bond and Receive a Refund?

Yes, Jet can cancel your bond for you at any time! Just send Jet a cancellation request (email or mail is fine), and we will proceed with sending the Commissioner a cancellation notice through the required certified mail option. Liability will be released within 45 days of the cancellation notice date.

Jet will charge for the 45-day period as the bond technically remains active during that time. Jet will stop taking payment once the cancellation period has ended. If an annual or multiple-year payment option was chosen, our team will review the bond to see if there is any premium available for reimbursement to the licensee organization. 

North Carolina Professional Employer Organization Bond Form

Notary Bond Application:

X

Business Information:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Employee Dishonesty Bond Application:

Business Information:

Business Description:

Coverage Requirements:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Contract Bond Application:

X

Business Information:

Owner Information:

Job Details:

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information:

Worker's Compensation Application:

X

Business Information:

Business Description:

Coverage Requirements

Indemnity Agreement:

I, the undersigned, hereby apply for a Dishonesty Bond also known as a Business Service Bond or Janitorial Service Bond (“bond”) to the Surety Company (“SURETY”) through Jet Insurance Company (“JET”), with whom I hereby grant the authority to act on my behalf with respect to the bond and assign as my Broker of Record, and declare that the statements herein are true and correct. In consideration of the SURETY issuing, renewing or substituting said bond(s), I, individually and as the owner or officer of the bonded entity, hereby understand and agree, as follows: (i) to reimburse, hold harmless, and indemnify SURETY upon demand for all loss, liability, claim, expense, including but not limited to attorneys’ fees, expert’s fees, investigative fees and claims handling fees, and any other cost which SURETY shall pay or incur in defense, adjustment, or settlement of such claims/suits by reason of such suretyship; (ii) that an itemized statement of loss and expenses by SURETY shall be indisputable proof of my liability to SURETY; (iii) coverage is subject to a $100 deductible; (iv) the employee must be convicted before coverage will apply (v) performance and any form of dispute resolution of this agreement shall take place in the county of SURETY's office of service; and (vi) a facsimile copy or electronically signed version of this agreement shall be binding as if it were an original. This agreement shall survive any changes in, substitute to or renewal of the bond(s).

Required Effect Date of Bond Policy:

Contact Information: