People who have loved ones living in an assisted living home need to have the peace of mind that their loved one is being taken care of properly.
Fortunately, a surety bond ensures that the care provider will treat the assisted living resident correctly and legally.
A Surety bond acts as a risk mitigation tool to protect the customers of a business.
An assisted living facility that is bonded means they are held by a contract to follow the terms of the surety bond. In this case, the 3 parties of the Assisted Living Facility surety bond are:
- Principle- The Assisted Living Company
- Obligee- The party that is requiring the bond to protect the assisted living residents
- The Surety- The agency that issues and ensures the surety bond
The 3 main reasons why a surety bond is beneficial to an assisted living facility is to…
- Implement health care industry regulations
- Keep unqualified professionals out of the assisted care industry
- Provide families a peace of mind who have loved ones in an assisted living home.
This specific type of surety bond requires the assisted living facility to legally handle patient’s funds as well as third party payments on behalf of the resident.
The bond amount is typically $5,000, although the specific amount of the surety bond will depend on the state the bond will be held in.
For example, in Nevada, a $5,000 Nevada Assisted Living License Bond is required by the State of Nevada Department of Human Resources Division for Aging Services. The surety bond requires the Nevada assisted living facility to comply with the state licensing requirements.
Surety1 can help you with your bonding needs. To apply for your bond go directly to our website here.