In South Carolina, health clubs are also referred to as Physical Fitness Service Providers.
The licensing and surety bond requirement encompass businesses which are categorized as:
The South Carolina Department of Consumer Affairs regulates the activities of health clubs and the surety bond required of you.
Section 44-79-80 of the South Carolina statutes states that a South Carolina health club bond will be required of those who:
Will be required to obtain a surety bond. While no specific amount is given, the maximum surety bond is $50,000.
Qualifying is by filling out a surety bond application which can be done over the phone with an agent. As part of the underwriting review, a standard credit inquiry is involved. The estimated cost of your premium will be between 1% - to 1.5% of the bond amount required.
Subsequent to the approval of your surety bond and payment of the premium, a copy of the bond can be emailed to you address; however, you will want to file the original surety bond (with your signature) for compliance purposes.
An SC health club surety bond is issued with a term for one year, thereafter the bond is renewed. In some cases, we may be able to offer you a prepayment of the bond for 2 or 3 years. An active surety bond is statutorily required as a condition of licensing with the Department of Consumer Affairs.
The purpose of this surety bond is for the protection of your customers in the event that your health club fails to provide the contractually agreed services.
The bond is also a financial guarantee of your compliance with the S.C. Physical Fitness Services Act, and any amendments to this law.
As the principal of this surety bond, you are responsible to indemnify the surety for any claims paid against your bond; however, the claims will not exceed the amount of the surety bond, excluding attorney fees and costs.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit surety bonds throughout South Carolina.
Our agency also provides surety bonds nationwide.
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