NOTE: This bond is not the same as a California Employment Agency bond. For more California surety bonds, go here.
What is a surety bond, and why do I need one for my California Employment Counseling Service?
A surety bond is a three-way agreement between a Principal (the owner/operator of the Employment Counseling Service), an Obligee (California Secretary of State), and a surety company (the company financially backing the bond). A surety bond is NOT an insurance policy for the Principal; instead, it protects the obligee and the California public from any financial obligations resulting from negligence or fraud on behalf of the Principal. This bond is a guarantee that the Principal understands and agrees to comply with all laws, regulations, and statutes set forth outlining the legal operation of an Employment Counseling Service in California (reference California Civil Code Title 2.91, Part 4, Division 3). This California Employment Counseling Service Bond is a requirement for anyone operating such a business.
This bond is written for the amount of $10,000 for 2 years, and costs $350 for the same 2-year term.
In the event that there is a claim filed against your bond, the surety company will make initial payments for the damages, at which point you will be required to fully repay the amount, plus any additional fees or penalties. In addition to repayment, your surety may revoke your bond. If your bond is revoked, you must cease business operations until a new bond is filed.
It is important that you, your employees, and/or agents understand the laws and regulations pertaining to your legal business operation to avoid claims against your bond. Please understand that any claims against your bond are serious, and are considered marks against your “credit” in the bond market. A history of claims will complicate future surety bond applications, and may ultimately block your ability to file new bonds.

Your bond will be issued within 1-3 days after you submit a completed application and payment.