FOR ALL YOUR SURETY BOND NEEDS.
California legally requires a variety of individuals, contractors, and organizations to secure surety bonds to conduct business across the public service industry. Apply for a California Surety Bond today! Single Source Insurance is a leading California bonding company providing bonds with a convenient online application system. Browse the most common types of bonds in this state, or contact us for a full list.
Athlete agents make their living by representing professional athletes, or amateur athletes making the transition to professional status. These athletes rely on their agents to find them employment and sponsorships, represent them in contract negotiations, handle their public relations, advise them on financial matters, and more. In many cases, athlete agents accept payments on behalf of their clients.
The state of California recognizes that athlete agents hold a position of trust, and accordingly have established requirements for licensing, business registration, and bonding that protect their clients.
Specifically, an athlete agent bond protects the athletes represented by a given agent against financial loss due to the agent�s unlawful or unethical acts, such as fraudulent commission accounting. The $100,000 required bond amount is pledged for the compensation of any injured party filing a valid claim against the bond.
You will need to purchase a $100,000 bond in order to obtain an athlete agent license from the California Secretary of State. Both individual agents and agency owners must be properly bonded and licensed.
When you sign a California athlete agent surety bond agreement, you are guaranteeing that you will conduct your business in full compliance with the applicable sections of the California Business and Profession Code. You�re also entering into a legally binding contract between you as the �principal� and the state of California (on behalf of your clients) as the �obligee.� The company that underwrites and issues the bond is known simply as the �surety.�
In issuing your California athlete agent bond, the surety is establishing a line of credit that can be accessed to pay any valid claim against the bond. Should you be found responsible for a financial loss a client suffers, that individual can file a claim against your bond. And if the surety determines that the claim is valid, you�re solely responsible for paying it.
In practice, however, the surety will pay the claim up front, drawing down your $100,000 line of credit and legally obligating you to repay the surety. It�s a process that ensures prompt compensation of claimants while giving the principal some time to reimburse the surety, which often is done in installments.
You�ll pay an annual premium when you purchase a California athlete agent bond. That premium is based on the required amount of the bond, $100,000, and the specific premium rate assigned to you by the surety.
The primary things the surety will look at in determining your premium rate are your personal credit score and your financial stability. The better those are, the lower the risk to the surety, and the lower your premium rate.
Request a convenient online quote today, or call us to discuss the California athlete agent bond you need.
