Federal & Healthcare
Representative Payee Bond
A fidelity bond that an organization acting as a Social Security representative payee must carry to collect a fee for managing beneficiaries' benefits.
- Required by
- Social Security Administration
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond protects beneficiaries and the Social Security Administration against loss caused by the organization, its officers, or its employees, including theft or embezzlement. A claim arises when benefits or conserved funds are misused.
Who needs it
- Fee-for-service organizational representative payees
- Nonprofits managing Social Security benefits for clients
- Group homes and care providers serving as payee
What the underwriter looks at
- Conserved funds on hand
- Average monthly benefits received
- Internal controls
- Organization's financial statements
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How much coverage does SSA require?
At least the beneficiaries' conserved funds on hand plus the average monthly Social Security payments the organization receives. For example, $5,000 in conserved funds plus $12,000 in monthly payments means at least $17,000.
Does the bond need to cover officers?
Yes. SSA requires coverage for theft by officers as well as employees, which often means adding a rider to an employee dishonesty bond.
Do individual family-member payees need a bond?
No. The requirement applies to non-governmental organizations that collect a fee.