North Carolina Professional Employer Organization Surety Bond
Pursuant to statute and Insurance regulations a North Carolina Professional Employer Organization surety bond is required from all parties that wish to engage in professional employee services. "Professional employer services" means an arrangement by which employees of a licensee are assigned to work at a client company and in which employment responsibilities are in fact shared by the licensee and the client company in accordance with G.S. 58-89A-100, the employee's assignment is intended to be of a long-term or continuing nature, rather than temporary or seasonal in nature. "Professional employer services" does not include services that provide temporary employees or independent contractors, a personnel placement service, managed services, payroll services that do not involve employee staffing or leasing, the sharing of employees by commonly owned companies.
Licensing of a Professional Employer Organization, or "PEO" is handled by the North Carolina Department of Insurance. The North Carolina professional employer organization bond is only one part of the extensive documentation required by the Department. The surety bond "initially" in the amount of one hundred thousand dollars ($100,000) however an applicant whose current assets do not exceed current liabilities pursuant to G.S. 58-89A-60(b) is required to provide additional surety. The surety bond obligation guarantees that surety will fulfill all financial obligations and liabilities of the Principal under Chapter 58, Article 89A of the North Carolina General Statutes in the event that the Principal fails to meet such obligations and liabilities. Surety is liable only for the penal sum of the bond, in no event in excess of the dollar amount stated on its face or in any endorsements to the bond. The Surety may cancel the surety bond by giving the Department forty-five (45) days written notice by registered or certified mail. The bond and application materials must be submitted as follows:
North Carolina Department of Insurance
North Carolina Professional Employer Organization Surety Bond
1204 Mail Service Center
Raleigh, NC 27699-1204
Professional employer organizations registered to operate in North Carolina on December 31, 2004 may continue to operate pending approval of the application for a license or approval of the person's notification of "de minimis" registration provided that the application or notification was filed with the Department no later than July 1, 2005. Questions about PEO licensing can be directed to Kimball.Andresen@ncdoi.gov.
North Carolina surety bond leader, Surety One, Inc. offers same-day servicing of your PEO surety bond request. Our special programs allow us to offer you bonding regardless of your credit and financial condition. Do you operate in multiple states? No problem! We offer surety bonds in all states and offer fidelity bond coverages for this class of business as well. Visit us at SuretyOne.com, call (787) 333-0222 or (800) 373-2804, or email us at Underwriting@SuretyOne.com for a North Carolina professional employer organization surety bond application or for information on any surety need.
Surety bond application review and quoting are free of charge. There is no obligation to purchase.
