Connecticut Homemaker Companion Agency Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Connecticut Homemaker Companion Agency Bond
At a Glance:
- Lowest Cost: $100 per year or $10 per month
- Bond Amount: $10,000
- Who Needs it: All homemaker companion agencies operating in Connecticut
- Purpose: To ensure the public will receive compensation for financial harm if an employee of the agency steals from a consumer
- Who Regulates Homemaker Companion Agencies in Connecticut: The Connecticut Department of Consumer Protection
Connecticut statute 20-671 requires all homemaker companion agencies operating in the state to register with the Department of Consumer Protection. The Connecticut legislature enacted the registration laws and regulations to ensure that homemaker companion agencies engage in ethical business practices. To provide financial security for the enforcement of the registration law, homemaker companion agencies must purchase and maintain a $10,000 surety bond to be eligible for registration.
What is the Purpose of the Connecticut Homemaker Companion Agency Bond?
Connecticut requires homemaker companion agencies to purchase a surety bond as part of the application process to obtain a business registration. The bond ensures that the public will receive compensation for financial harm if the agency fails to comply with the regulations set forth in Connecticut statute 20-672. Specifically, the bond protects the public in the event an employee of the agency steals from a consumer. In short, the bond is a type of insurance that protects the public if an employee of the agency commits theft.
How Can an Insurance Agent Obtain a Connecticut Homemaker Companion Agency Surety Bond?
BondExchange makes obtaining a Connecticut Homemaker Companion Agency surety bond easy. Simply log in to your account and use our keyword search to find the “homemaker” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
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Is a Credit Check Required?
No, a credit check is not required to obtain the bond. Because the bond is considered relatively low risk, the same rate is offered to all homemaker companion agencies in Connecticut regardless of their credit history.
How Much Does the Connecticut Homemaker Companion Agency Bond Cost?
The Connecticut Homemaker Companion Agency bond costs just $100 per year or $10 per month.
Who is Required to Purchase the Bond?
Connecticut requires homemaker companion agencies to be bonded as a prerequisite to obtaining a registration. Connecticut statute, 20-670 defines a homemaker companion agency as any business entity that provides nonmedical, supportive, and supervisory services to ensure the safety and well-being of an individual in their own home.
BondExchange now offers monthly pay-as-you-go subscriptions for surety bonds. Your customers are able to purchase their bonds on a monthly basis and cancel them anytime. Learn more here.
How Do Homemaker Companion Agencies Apply For a Registration in Connecticut?
Homemaker companion agencies in Connecticut must navigate several steps to secure their registrations. Below are the general guidelines, but applicants should refer to the application form for details on the process.
Registration Period – All Connecticut Homemaker Companion Agency Registrations expire on October 31 of each year and must be renewed before the expiration date
Step 1 – Purchase a Surety Bond
Homemaker companion agencies must purchase and maintain a $10,000 surety bond
Step 2 – Obtain a Certificate of Good Standing
Registration applicants must obtain a Certificate of Good Standing from the Connecticut Secretary of State
Step 3 – Complete the Application
All Connecticut Homemaker Companion Agency Registration applications can be completed online here. Agencies must complete the application in its entirety, and pay a $375 application fee.
How Do Connecticut Homemaker Companion Agencies Renew Their Registration?
Homemaker companion agencies should submit their completed renewal application, including a $375 renewal fee, online here. All Connecticut Homemaker Companion Agency Registrations expire on October 31 of each year and must be renewed before the expiration date.
What are the Insurance Requirements for Homemaker Companion Agencies in Connecticut?
Connecticut does not require homemaker companion agencies to obtain any form of liability insurance as a prerequisite to obtaining a business registration. Homemaker companion agencies must purchase and maintain a $10,000 surety bond.
How Do Connecticut Homemaker Companion Agencies File Their Bond?
Homemaker companion agencies should submit their completed bond form, including the power of attorney, online here. The surety bond requires signatures from both the surety company that issues the bond and a representative from the homemaker companion agency. The surety company should include the following information on the bond form:
- Legal name and address of entity/individual(s) buying the bond
- Surety company’s name
- Bond amount
- Date the bond is signed
What Can Connecticut Homemaker Companion Agencies Do to Avoid Claims Against Their Bonds?
To avoid claims on their bond, homemaker companion agencies in Connecticut must ensure that their employees do not steal from customers.
What Other Insurance Products Can Agents Offer Homemaker Companion Agencies in Connecticut?
Connecticut does not require homemaker companion agencies to purchase any form of liability insurance as a prerequisite to obtaining a business registration. 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 Connecituct Homemaker Companion Agency Customers?
Connecticut conveniently provides a public database to search for active homemaker companion agencies in the state. The database can be accessed here. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.