Wage and Welfare

Wage and welfare bonds ensure that an employer pays wages and contributes to welfare funds, if these dues are defaulted on, a claim may be filed against the employer. This bond also guarantees union dues compensation.

Wage and welfare bonds have less to do with the applicant\'s credit score and more to do with the bond\'s loss ratio. In the past few years, high-risk applicants have become more prevalent and the procedure for writing bonds for those with sub-par credit and/or financial statements and high-risk bonds are the same.