Who Needs This Bond?

You’ll need this bond if you are engaged in selling or soliciting subscriptions, books, or magazines door-to-door or in public spaces. This applies to:

• Independent solicitors: Individuals working directly with publishers or distributors.

• Sales teams: Groups representing companies that solicit subscriptions or sales.

Why Is This Bond Necessary?

Based on my experience, this bond helps foster trust between solicitors and the public. It ensures solicitors adhere to Georgia’s laws and ethical standards, protecting consumers from:

• Misleading or deceptive sales tactics.

• Unfulfilled subscriptions or orders.

• Financial losses due to fraudulent activity.

The bond also provides a mechanism for consumers to seek compensation if a solicitor fails to meet their legal or contractual obligations.

How Does the Bond Work?

This bond is a contract involving three parties:

1. Principal: You, the solicitor or business obtaining the bond.

2. Obligee: The state or licensing authority requiring the bond.

3. Surety: The bonding company issuing the bond.

If a claim is filed against the bond for violations or unethical practices, the surety investigates and compensates the claimant if the claim is valid. However, you must reimburse the surety for any paid claims.

How Much Does the Bond Cost?

The bond amount is determined by Georgia state regulations, but the cost you pay is a premium, which is a percentage of the total bond amount. Factors influencing the cost include:

• Personal credit score: Higher scores often result in lower premiums.

• Business history: A proven track record of ethical operations can reduce costs.

• Bond amount: The required bond amount set by the state will impact the premium.

In my observation, premiums typically range from 1% to 5% of the bond amount annually.

Steps to Obtain a Georgia Book or Magazine Solicitor Bond

1. Determine bond requirements: Confirm the bond amount and any state-specific obligations with your licensing authority.

2. Submit an application: Provide personal and business details to the surety company.

3. Undergo underwriting: The surety assesses your application and creditworthiness.

4. Pay the premium: Once approved, you’ll pay the premium to receive your bond.

5. File the bond: Submit the bond to the appropriate state agency to complete your licensing process.

Maintaining Your Bond

A Georgia Book or Magazine Solicitor Bond must remain active for as long as you are soliciting. Key tips for maintenance include:

• Renew annually: Bonds typically last for one year and must be renewed.

• Keep business records clean: Avoid claims by adhering to all regulations.

• Update your bond as needed: Notify your surety of any changes in business operations.