What is an Assisted Living Facility Surety Bond?
An Assisted Living Facility Surety Bond seeks to safeguard residents of an assisted living facility. The ALF Bond ensures that the assisted living facility properly handles patient funds and third party payments on behalf of the resident if applicable. These bonds are often referred to as Resident Trust Bonds, Patient Trust Bonds, and other names.
Is an Assisted Living Facility Surety Bond the same as a Patient Trust Bond?
In most cases, yes, an ALF Surety Bond is the same as a Patient Trust Bond. These bond types provide a sort of financial protection if the facility mishandles patient funds. The bond form and applicable state statutes often determine how a bond claim can be made. Generally, it will also describe what triggers the claim (i.e. what defines mishandling). Usually a claim occurs when patient’s money which is held in trust is used for purposes other than originally agreed upon.
What is the current market for an Assisted Living Facility Surety Bond?
Assisted Living Facility Surety Bonds are widely written by multiple surety bond markets. The respective minimum and maximum bond amounts for the Assisted Living Facility Surety Bond are $5,000 or two times the amount held in trust. However, these minimum and maximum amounts are determined by each state and may differ. The amount of bond needed varies and is most often dependent on the amounts held in trust covered by the bond. Terms of approval and premium are largely determined by the financial condition of the assisted living facility’s corporate and/or personal net worth, experience, and the needed bond amount. However, smaller bond amounts for new facilities can be approved based on the owner’s personal credit score. The average cost for this bond type is usually in between 1-2% of the bond amount needed. For example: a $10,000 bond should cost in between $100 and $200 per year.
How do I apply for an Assisted Living Facility Surety Bond?
- Complete our online Assisted Living Facility Surety Bond application, or
- Download and complete our printable Assisted Living Facility Surety Bond application, and
- Receive your surety bond quote in minutes!