Kentucky Health Spa Bond |
AmeriPro Surety Bonds | 844-589-9732
Health Clubs – Commonwealth of Kentucky
Health clubs or health spas which operate in the Commonwealth of Kentucky are regulated by the state’s Office of the Attorney General.
The bond amount required is determined by the number of fully paid memberships your health spa has at the time of the submission of the application for licensing.
The breakdown for surety bond amounts are as follows:
- 150 or fewer paid members requires a $10,000 surety bond;
- 151 to 300 members requires a $25,000 surety bond;
- 301 and above requires a $50,000 surety bond.
Qualifying and the Premium
Applicants for the Kentucky health spa bond will be asked to complete a surety bond application and undergo an underwriter review. As part of the underwriting process, there is also a credit inquiry. The credit inquiry used by our agency is a “soft inquiry” which does not affect your credit score.
If you are approved for this bond, the premium is 1% annually – $100, $250, or $500, which corresponds with the amount of surety listed above.
Once the bond has been approved and paid for, a copy of the bond can be sent to you by email. The original surety bond, which you will both sign as Principal and file with the Commonwealth, will follow in the mail by the following business day.
The Term of the Bond
The bond’s term is for one year. You may prepay the bond for up 3 years, but bear in mind that you are also required to file a new surety bond as the number of paid memberships changes. Still, prepayment of this bond is available; however, likely, it would be best utilized by someone requiring a $50,000 surety bond.
If you choose a prepayment option, the Kentucky health spa bond may be prepaid for 2 or 3 years, thereby also offering you a savings over year to year renewal of the bond’s premium.
Purpose of the Health Spa Surety Bond Requirement
The health spa surety bond is required as a financial guarantee for customers in the event that a licensed health spa:
- ceases operations before the contractual terms are met;
- becomes insolvent;
- or, if a licensed Kentucky health spa does not open within 90 days of the first contract
that such customers may recoup any losses incurred. The total aggregate value of such payments, however, will not exceed the amount of surety required.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit surety bonds throughout the Commonwealth of Kentucky.
Our agency also provides surety bonds nationwide.
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