Michigan Security Guard Agency Bond – $25,000 Bond for DBA Entities

If you operate a security guard agency in Michigan under a Doing Business As (DBA) name, you’ll need a $25,000 Security Guard Agency Bond before obtaining your license. This bond is a legal requirement set by the Michigan Department of Licensing and Regulatory Affairs (LARA) to ensure that agencies comply with all regulations and operate ethically.

From my experience, many security agency owners don’t realize they need this bond until they begin the licensing process. If you're in this situation, this guide will help you understand everything about the Michigan Security Guard Agency Bond, its purpose, costs, and how to obtain one quickly.

What Is a Michigan Security Guard Agency Bond?

A Security Guard Agency Bond is a type of surety bond required by the state of Michigan for businesses providing private security services. This bond ensures that security agencies operate lawfully, ethically, and professionally, protecting both clients and the public from potential misconduct.

Since your agency is operating as a DBA (Doing Business As), this means the principal (business owner) is personally responsible for ensuring compliance under the registered business name. The $25,000 bond amount serves as financial protection in case of violations or unethical practices.

Key Purposes of the Bond

✔ Ensures security agencies follow state regulations
✔ Provides financial protection to clients and the public
✔ Covers damages if the agency engages in fraud, negligence, or misconduct
✔ Helps maintain industry standards and professionalism

If a security agency fails to comply with state laws or engages in fraudulent activities, a claim can be filed against the bond to compensate affected parties.

Who Needs a Michigan Security Guard Agency Bond?

You are required to obtain this $25,000 surety bond if:

✅ You own or operate a private security guard agency in Michigan
✅ Your agency is registered under a DBA (Doing Business As) name
✅ You are applying for or renewing a Security Guard Agency License through LARA
✅ You provide security, patrol, or investigative services to businesses or individuals

Even if your agency has no employees, the bond is still required. The state mandates this bond to ensure that all licensed agencies operate in compliance with Michigan security laws (Public Act 330 of 1968).

How Much Does a Michigan Security Guard Agency Bond Cost?

While the bond amount is set at $25,000, you don’t need to pay the full amount upfront. Instead, you pay a small percentage of the bond amount, based on factors like credit score, business history, and financial strength.

Typical Bond Cost Estimates

📌 With good credit (700+ score) – Premiums start around $250 - $500 per year
📌 With fair credit (650-699 score) – Premiums range from $500 - $1,250 per year
📌 With poor credit (below 650) – Premiums may range from $1,250+ per year

In my experience, security agency owners can save money by working with a surety provider that specializes in high-risk bonds, especially if credit is a concern.

How to Obtain a Michigan Security Guard Agency Bond

Getting your $25,000 Security Guard Agency Bond is a straightforward process:

1️⃣ Determine Your Bond Requirement – Confirm with LARA that your agency must provide a $25,000 bond under your DBA name.
2️⃣ Complete a Bond Application – Provide details about your agency, business structure, and ownership.
3️⃣ Get a Quote – Your bond rate is based on credit score, financial history, and business experience.
4️⃣ Pay for the Bond – Once approved, pay the bond premium to activate coverage.
5️⃣ File the Bond with LARA – Submit the bond with your Security Guard Agency License application or renewal documents.

Most bonds can be issued within 24 hours, ensuring you meet licensing deadlines without delays.

What Happens If a Claim Is Filed Against Your Bond?

If a client, employee, or the state files a claim against your bond due to misconduct, negligence, or non-compliance, the surety company will investigate the claim. If it’s valid, the surety may pay out damages up to the $25,000 bond limit—but you are ultimately responsible for reimbursing the surety for any claims paid.

Common Reasons for Bond Claims

🚨 Failure to follow state security regulations
🚨 Misconduct by security personnel
🚨 Fraudulent business practices
🚨 Contract violations or failure to pay employees

Maintaining ethical business practices and following all Michigan security laws is the best way to avoid bond claims and keep your business in good standing.

Why Choose Axcess Surety for Your Security Guard Agency Bond?

At Axcess Surety, we specialize in helping security agencies quickly obtain the bonds they need at the best rates possible.

✔ Fast Approvals – Get your bond issued in 24 hours
✔ Affordable Rates – We offer low-cost options, even for those with credit challenges
✔ Expert Guidance – Our team understands Michigan security bonding requirements
✔ Simple Online Application – Apply in minutes from anywhere

Get Your Michigan Security Guard Agency Bond Today!

Need a $25,000 Security Guard Agency Bond for your DBA business? We make it fast, easy, and affordable.

🔗 Apply Now or call us today to get started!