Alabama licensed nursing facilities are regulated by the Alabama Department of Public Health. Surety bond requirements for such facilities are formally described as “financial security” by the Department.
Our agency helps you to quickly obtain the surety bond amount you require.
No specific amount of surety bond is stated by statute. Presumably this is because facilities will have varying amounts depending on the number of patients and the patients’ finances.
That having been stated, although a specific amount is not provided by statute, you are required to obtain an amount equivalent “...to assure the security of all personal funds of residents deposited with the facility.”
While our agency will provide the surety bond in whatever amount you require, it will be between you and the Department of Public Health to mutually agree to what that amount is.
Qualifying for the Alabama patient trust fund bond is by an application, and depending on the amount of surety required, a credit check.
Applicants for any amount up to and including $50,000 will qualify for this surety bond as an instant issue surety bond. What this means is that there will be no credit check or underwriter review for this bond: After the completion of an application, and payment of the premium – 1% of the bond amount required – the patient trust fund surety bond will be issued to you immediately.
For any amounts greater than $50,000, a standard credit check review is part of the underwriting process; however, you will still qualify for a premium of 1% of the amount of surety bond required.
The Alabama patient trust fund bond, once issued, is active for one year. Thereafter, the bond will need to be renewed. Likely surety bond amounts will vary from one year to the next as circumstances, needs of patients, or number of patients change.
The bond is a financial guarantee on behalf of your patients that you will act in a proper and objective fiduciary capacity over patients’ funds and property.
The bond’s existence protects your nursing facility patients from acts of malfeasance, misrepresentation, and fraud in the discharge of your duties as it concerns their finances and property.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit and fiduciary surety bonds throughout Alabama.
Our agency also provides surety bonds nationwide.
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