License & Permit
Telemarketing Bond
A telemarketing bond is a license bond many states require before a business can sell goods or services by phone to their residents.
- Required by
- State attorneys general and consumer agencies (Alabama Attorney General; Florida FDACS)
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond runs to the state licensing agency for the benefit of consumers. It covers buyers hurt by the telemarketer's fraud, misrepresentation, breach of contract, financial failure, or violation of the state telemarketing act. The state or the consumer files a claim, and the surety pays valid claims up to the bond amount.
Who needs it
- Commercial telephone sellers
- Call centers selling to consumers
- Businesses that make outbound sales calls
What the underwriter looks at
- Owner and business credit
- Years in business
- Consumer complaint history
- Financial statements for larger bonds
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 is the bond in Alabama and Florida?
Alabama's Attorney General bond form is for $50,000 under s. 8-19A-10. Florida requires at least $50,000 under s. 501.611 and may require more.
Can I use a letter of credit instead?
Both Alabama and Florida accept a bond, a letter of credit, or a certificate of deposit. Most sellers use a bond so their cash stays free.
Is this the same as registering for the Do Not Call list?
No. Do Not Call rules are separate. The bond is part of the state license to sell by phone.