A successful applicant to become an Express Scripts pharmacy provider (an applicant that has met all other terms and conditions for contracting with Express Scripts) is required to furnish an Express Scripts Performance Bond (Surety Bond) in the amount of $500,000. The Surety Bond is a three‐party legal agreement between the obligee (Express Scripts), the principal (party applying for the bond), and a surety bond company. The bond guarantees to the obligee (Express Scripts) that the principal will carry out the performance of their contract according to terms and conditions agreed to by the Express Scripts and the pharmacy provider. It is important to note that a surety bond is not insurance. If express Scripts makes a claim on the surety bond, the surety company will expect the principal and its indemnitors to hold it harmless against all losses. The bond is required for the initial 2 year term and may be extended for additional 2 year terms at the sole discretion of Express Scripts.
Why is an Express Scripts Performance Bond Required?
The requirement helps mitigate the financial risk to Express Scripts’ plan sponsors who pay claims for pharmacy services. Unsecured, independent pharmacies represent a substantial credit risk to Express Scripts’ plan sponsors. The surety company pre-qualifies the independent pharmacies to assure the credit worthiness of the applicant and backs up this underwriting with a $500k financial guarantee. If the principal does not perform, the Express Scripts Performance Bond will be used to perform the contract, protecting both the plan sponsors and Express Scripts from any financial loss, up to the penal sum of the bond.
What are the underwiring requirements to qualify for the surety bond?
The Express Scripts Performance Bond is a financial guarantee bond. As such, the surety will be primarily interested in the verifying the financial capacity of the principal. This will intail providing the following information:
- A completed application.
- Resumes of the owners.
- A current company financial statement (balance sheet and income statement).
- Personal financial statements (balance sheets) for all owners.
- Written verification of cash and other liquid assets.
If approved the surety will require corporate and personal indemnity of all owners and spouses.
Where to apply for the bond
Simply click here to access Surety1’s state of the art, online application . You will have the opportunity to upload the financial information or wait until you are contacted by one of our surety bond professional agents. Your agent will walk you though the remainder of the underwriting process and provide a firm quote for the bond, usually within 2 business days.
Surety1, an AssuredPartners agency, is surety bond only agency licensed in all 50 states. Since 2003, Surety1 has been the premier online provider of surety bonds nationwide and maintains an A+ rating from the Better Business Bureau . Our team of 14 surety bond professionals are ready to assist you with your Express Scripts Performance Bond.