What is a nursing home bond?
Long-term care facilities like assisted living centers and nursing homes must obtain a nursing home bond. Also known as a patient trust bond or nursing facility resident trust fund bond, a nursing home bond offers financial protection for patients and their families. It guarantees that businesses abide by industry laws and regulations. It also ensures that businesses honestly administer patient trust funds. Your surety bond will outline your business’s obligations to your patients and the state or federal government.
Who needs a nursing home bond?
If your business offers long-term care services, you may need this surety bond. Nursing homes, assisted living facilities, and at-home care businesses must post this bond to protect patients and their families. The bond ensures that you abide by industry and state laws and regulations and handle funds ethically and legally. See Section 483.10(c)(7) of the Code of Federal Regulations for more details.Get Your Nursing Home Bond:
Quick Takeaways
- Many long-term care facilities must obtain a nursing home bond, also known as a patient trust bond or nursing facility resident trust fund bond.
- A patient (or resident) trust fund is an account that long-term or senior care facilities hold for their residents.
- Laws concerning how these trust funds are held and distributed can vary by state.
- If you have strong financial credentials and a high credit score, you could pay a low rate (1-3%) of the total bond amount, which is $50,000.
How do nursing home bonds work?
Laws concerning how these trust funds are held and distributed can vary by state. The surety bond keeps each facility in check, ensuring funds are monitored and distributed lawfully. If money is lost or stolen, the surety bond protects the victim – who may receive compensation for the amount lost. Nursing home bonds are three-party agreements:
- The obligee is the state or federal government that requires the surety bond.
- The principal is the long-term care facility that must obtain the bond.
- The surety is the financial institution that underwrites and issues the bond.
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If the facility breaks the law and misuses patient funds, the injured party may file a claim against the bond for reimbursement. The surety bond may cover the damages and be used to settle the claim. The facility, however, must repay the surety in full for the amount covered.
How much do nursing home bonds cost?
Specific costs and requirements for surety bonds can vary by state, as do the laws and regulations regarding business licenses. If you have strong financial credentials and a high credit score, you may pay a low rate (1-3%) of the total bond amount, which is $50,000. If you have poor credit, you may pay a higher rate for your premium.
Get a Nursing Home Bond in Your State
ZipBonds is the fastest and most secure way to get the license and permit bond you need. We take out the pain of long, complicated applications. Most of our bonds are approved and processed immediately. Get your nursing home bond by applying below – or call us directly so we can walk you through the process.
About ZipBonds.com
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.