Utility Bonds are required to be posted by a business before the utility company will connect their services. So if your business wants to get connected to water, electrical, and other services, they’ll usually need to post this type of bond. It guarantees that you’ll make your required utility payment.
The purpose of these type of bonds is to protect the obligee, the utility provider, against default of payments by their customer. In most cases, if the customer is an individual or residential customer, the bond is not required, but it’s almost always required when servicing a business.
Utility Bonds are considered high risk because it’s essentially a financial guarantee bond. As the obligee, the public entity could file a claim and receive compensation up to the bond penal sum amount if the principal (seller) is not in compliance. If the amount of the bond is over $50,000, then the surety will most likely need to review company and personal financials in order to approve the bond.
At Baldwin Cox Allen, we have access to over 25 different A rated bonding companies which allows us to shop the market and provide the lowest possible rates. We have cutting edge surety technology which allows us to this for you without delaying the execution of your bonds, as we know that timing can be critical.
Hard To Place Bonds
We have solutions for even the most challenging bonds. We say “Yes” when other agents tell you “No”. Whether it’s because you have low credit, or there’s just a particularly onerous bond form, we pride ourselves on getting bonds approved with the best possible terms.
Please contact us today and let one of our experienced surety bond professionals assist you with your bonding needs!