Surety Bonds for Utility Bonds
What is a Utility Bond?
A utility bond is purchased by a home or business owner to ensure that payments are made to a utility company. It is sometimes required of businesses to purchase a surety bond before the utility are turned on. The utility company is the entity being protected against the business or home owner, if they do not pay the utility bills. A claim can be filed if the home or business owner does not pay the amount. If this occurs, the surety will pay the outstanding amount to the utility company and then seek compensation from the business or home owner.
A utility bond is not needed by everyone, but may be asked for as a prerequisite by a utility company or an individual or business with a history of late payments. It is sometimes required to waive a security deposit or if it is a new service. Utility bonds are also considered to be a high risk bond because, in many cases, a utility bond is required of people with a history of late payments, making it a higher risk to “vouch” for the applicant. A utility surety bond is not a federal or state requirement, but is usually required by private utility companies.
Who may be required to purchase a Utility Bond?
A utility bond is purchased by a home or business owner to ensure that payments are made to a utility company.
Are utility bonds considered high risk?
Yes, because in many cases, a utility bond is required of people with a history of late payments.
Get a Utility Bond today!
1) Fill out the form on our website – this takes 30 seconds of your time and we will get back to you with a quote in less than 24 hours (oftentimes within the hour).
2) Call us directly at 781-559-0568 – we are here to help!