Kentucky service contract provider bonds.
$1,000 flat.
Kentucky keeps a service contract out of the insurance code only if the maker registers with the Department of Insurance and proves it can perform. For almost everyone that proof is a performance bond, because the only other accepted showing is a hundred-million-dollar net worth. Ours is the $50,000 bond at $1,000 flat.
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How much does a Kentucky service contract provider bond cost?
$1,000 at the $50,000 amount, the same for every applicant.
Three steps. One sitting.
Registration is a paperwork exercise; the bond is the part you can finish right now. Here's the entire process:
Apply online
Business details, an effective date, and a term. No audited financials and no net-worth workup — the bond is what stands in for that showing.
Pay & e-sign
This bond is checkout-priced, so it issues the moment you pay — your executed bond and power of attorney generate on the spot.
File with the Department
Your e-signed bond and power of attorney arrive by email, ready to go into your registration filing with the Kentucky Department of Insurance. Wet-ink original mailed on request.
What it is and who needs it.
What the bond actually guarantees
Kentucky's insurance code sweeps broadly. Under KRS 304.5-070, a promise to repair, replace, or maintain someone else's property for a separately stated price looks a great deal like casualty insurance — and writing insurance without a certificate of authority is not a paperwork problem. Paragraph (1)(q) carves out the exception this bond serves: a service contract to repair, replace, or maintain consumer products is not insurance if the maker registers with the commissioner and proves it can perform its contracts.
There are exactly two accepted proofs. One is a net worth the commissioner finds sufficient, which 806 KAR 5:060 pegs at a hundred million dollars. The other is an insurance policy or performance bond with an authorized insurer, written for the greater of $50,000 or 25% of your annual Kentucky service-contract revenue. Most makers take the second door, which is why the Department's form names a provider/obligor rather than an insurer.
It is not insurance for you — if the surety pays a contract holder, you repay the surety. And the security has to stay continuous: the bond cannot be terminated on less than 30 days' prior written notice to the commissioner, a contract holder may claim directly against the surety once you have gone 60 days without paying a claim filed with you, and you owe the Department an updated report every March 1 for as long as any Kentucky contract is still running. We track the term and send renewal notices 60 and 30 days out.
You need this bond if you're
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the $50,000 bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The premium covers a one-year term from the effective date you choose; a longer term is the same price per year, chosen at checkout.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with the Department. Your e-signed bond and power of attorney arrive by email, ready to go into your registration filing with the Kentucky Department of Insurance. Wet-ink original mailed on request.
What sets the price
The premium is fixed at $1,000 at the $50,000 amount for every applicant: the carrier’s rate book prices this bond by the form, not by your credit or your business profile.
One soft credit pull, never a hard inquiry, and it never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued instantly.
These are the actual issuing fields — business details, an effective date, and a consent that authorizes a soft credit inquiry only.
Start the application →Common questions.
Other Kentucky bonds.
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Price and requirements checked on the carrier’s application, . Page updated .
Finish your Department of Insurance registration today.
$1,000 flat for the $50,000 bond, issued the moment you pay, soft pull only. Free until issued.