Doris 
A Maryland athlete agent bond is a surety bond, which is required by athlete agents or businesspeople in the state of Maryland. An Athletic Agent Bond serves as a financial guarantee that the agent will operate ethically and in compliance with state laws. An athlete agent helps an athlete in dealing with advertisements, endorsements, and assists them in acquiring other opportunities.
WHAT IS A MARYLAND ATHLETE AGENT BOND?
This bond protects the professional athlete from the agent in the ordinary course of business. This bond will enable the agent to comply with rules and regulations that are specifically given in the Maryland Uniform Athlete Agents Act. This bond grants financial security to the athlete from the agent. The agents are expected to operate within the applicable legal framework of the society. This bond also protects the athlete from any misrepresentation, fraud, or breach of contract by the agent. This bond ensures that the agent fulfils their professional obligation towards their principal. Like any surety bond, this Maryland athlete agent bond also requires three parties to a contract. If the agent fails to perform according to the law, then the surety company shall compensate the athlete for the loss suffered by him. Afterwards, the agent is contractually liable to repay the amount to the surety company.
HOW MUCH DOES A MARYLAND ATHLETE AGENT BOND COST?
The cost of obtaining a Maryland athlete agent bond depends on the financial position of the applicant. It means that the cost shall be determined on the basis of the net worth of the applicant. In the state of Maryland, the price for obtaining a bond is $25,000. However, this cost may vary according to the licensing needs and circumstances. The amount of premium can usually be between 1% to 5% of the bond value. However, an applicant with a good credit history qualifies to claim low-cost premiums. A surety company always asses the credit worthiness and financial position of the applicant before deciding the cost of premiums.
WHY IS A MARYLAND ATHLETE AGENT BOND NEEDED?
This bond protects the athlete in various ways.
1] It establishes a code of ethical conduct for the agent.
2] It enables the agent to comply with the state laws and regulations.
3] It creates a touch of accountability for the work performed by the agent.
4] It financially protects the applicant from any financial fraud committed by the agents.
DOES THE BOND PROTECT THE ATHLETE AGENT?
No, the bond does not protect the athlete agent. It rather protects the athlete from any fraud or misrepresentation done by the agent. If the agent happens to be found guilty, then he will be liable to repay the loss suffered by the athlete.
CONCLUSION
These bonds are usually required by professional athletes and businesspeople. The agent can easily commit fraud, as they are the ones dealing with the business on their own. This bond is necessary to mitigate any possible financial risk arising in the future.
