Cheyenne Detective and Security Guard Business Bond: A Comprehensive Guide

April 5, 2021

Cheyenne Detective and Security Guard Business Bond

This guide provides information for insurance agents to help their customers obtain a Cheynne Detective and Security Guard Business Bond

At a Glance:

  • Average Cost: $100 per year
  • Bond Amount: $10,000
  • Who Needs it: All detective, patrol, and guard service businesses operating in Cheyenne, Wyoming
  • Purpose: To ensure the public will receive compensation for any damages should the detective or security guard business violate licensing law
  • Who Requires the Bond: The City of Cheyenne

Background

Cheyenne Municipal Code 5.48.040 requires all detective and security guard businesses operating in the city to obtain a business license. The Cheyenne city council enacted the licensing requirement to ensure that these businesses engage in ethical business practices. To provide financial security for the enforcement of the licensing law, detective and security guard businesses must purchase and maintain a $10,000 surety bond to be eligible for licensure.

What is the Purpose of the Cheyenne Detective and Security Guard Business Bond?

Cheyenne requires detective and security guard businesses to purchase a surety bond as part of the application process to obtain a business license. The bond ensures that the public will receive compensation for financial harm if the business fails to comply with the regulations set forth in Cheynne Municipal Code 5.48.060. Specifically, the bond protects the public in the event that representatives of the business engage in any acts of fraud or breach any contracts made with consumers. In short, the bond is a type of insurance that protects the public if the detective or security guard business breaks licensing law.

Cheyenne Detective and Security Guard Business Bond Form

Cheyenne Detective and Security Guard Business Bond Form

How Can an Insurance Agent Obtain a Cheyenne Detective and Security Guard Business Surety Bond?

BondExchange makes obtaining a Cheyenne Detective and Security Guard Business Bond easy. Simply login to your account and use our keyword search to find the “license/permit” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.

At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.

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Is a Credit Check Required for the Cheyenne Detective and Security Bond Business Bond?

No, a credit check is not required for the Cheyenne Detective and Security Guard Business bond. Because the bond is considered relatively low risk, the same low rate is offered to all applicants operating in the city, regardless of their credit history.

How Much Does the Cheyenne Detective and Security Guard Business Bond Cost?

The Cheyenne Detective and Security Guard Business bond costs just $100 per year.

Who is Required to Purchase the Bond?

Cheyenne requires all detective, patrol, and guard service businesses to purchase a surety bond as a prerequisite to obtaining a business license. Cheyenne Municipal Code 5.48.020 defines these services as follows:

  • Detective Business: Conducts investigations, at the behest of clients, for the purposes of obtaining information
  • Patrol or Guard Service Business: Protects persons and/or property and prevents private and/or public crimes from occurring

Exemptions to these definitions include:

  • Collection agencies
  • Insurance companies
  • Insurance adjusting or claims agencies
  • Licensed attorneys
  • Law enforcement officers

How Do Cheyenne Detective and Security Guard Businesses Apply for a License?

Detective and security businesses in Cheyenne must navigate several steps to secure a business license. Below are the general guidelines, but applicants should refer to the licensing statutes for details on the process.

License Period – All Cheyenne Detective and Security Guard Business License are valid for one year from the date of issuance and must be renewed before the expiration date

Step 1 – Purchase a Surety Bond

Detective and security guard businesses must purchase and maintain a $10,000 surety bond

Step 2 – Purchase Insurance

Security guard businesses must purchase liability insurance with the following minimum limits:

    • $100,000 per occurrence
    • $200,000 annual aggregate limit

Detective businesses are exempt from this requirement.

Step 3 – Complete the Application

All Cheyenne Detective and Security Guard Business License applications should be mailed or delivered to the following address:

Municipal Building, Rm 101
2101 O’Neil Ave.
Cheyenne, WY 82001

Detective and security guard businesses must complete the application in its entirety, and submit the following items:

    • Company formation documents filed with the Wyoming Secretary of State’s office
    • Proof of age (driver’s license)
    • Recent photograph
    • $140 application fee

How do Cheyenne Detective and Security Guard Businesses Renew Their Licenses?

Detective and security guard businesses can renew their licenses by mailing or delivering a completed renewal application, including a $140 fee, to the following address:

Municipal Building, Rm 101
2101 O’Neil Ave.
Cheyenne, WY 82001

All Cheyenne Detective and Security Guard Business Licenses are valid for one year from the date of issuance and must be renewed before the expiration date.

What are the Insurance Requirements for Detective and Security Guard Businesses in Cheyenne?

Cheyenne requires security guard businesses to purchase liability insurance with the following minimum limits:

  • $100,000 per occurrence
  • $200,000 annual aggregate limit

Both detective and security guard businesses must purchase and maintain a $10,000 surety bond.

How Do Cheyenne Detective and Security Guard Businesses File Their Bonds?

Detective and security guard businesses should mail or deliver their completed bond forms, including the power of attorney, to the following address:

Municipal Building, Rm 101
2101 O’Neil Ave.
Cheyenne, WY 82001

The surety bond requires signatures from both the surety company that issues the bond and from the business owner. The surety company should include the following information on the bond form:

  • Legal name and license classification of the entity/individual(s) buying the bond
  • Surety company’s name and state of incorporation
  • Entity requiring the bond
  • Date the bond goes into effect
  • Date the bond is signed

What Can Cheyenne Detective and Security Guard Businesses do to Avoid Claims Against Their Bonds?

To avoid claims against their bonds, detective and security guard businesses in Cheyenne must adhere to all licensing regulations in the city, including some of the most important issues below that tend to cause claims:

  • Do not engage in any acts of fraud
  • Do not breach any contracts made with consumers

What Other Insurance Products Can Agents Offer Detective and Security Guard Businesses in Cheyenne?

Cheyenne requires security guard businesses to purchase liability insurance as a prerequisite to obtaining a business license. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.

How Can Insurance Agents Prospect for Cheyenne Detective and Security Guard Business Customers?

Cheyenne unfortunately does not provide a public database of active detective and security guard businesses in the city. We suggest contacting the city directly to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.

2022-06-10T11:11:27-04:00