A telemarketing bond sometimes called a phone solicitor license bond provide a financial guarantee that the telemarketer will operate within the guidelines of the state in which they are calling. The bond is meant to protect the consumers (those at the other end of the telephone line) from telemarketing companies failing to follow the state rules regarding phone solicitation laws. This type of bond falls under the category of license and permit bonds. A telemarketing bond is required by state governments to ensure telemarketers (phone solicitors) operate legally as per the terms of the state. Typically the telemarketing bond must first be purchased before a new telemarketing or phone soliciting business may renew or apply for a business license.