Utility bonds, also referred to as utility deposit bonds, are a type of surety bond required by utility service providers on a case-by-case basis. Utility deposit bonds serve as a financial guarantee that individuals and businesses will pay their utility bills on time and in full. Should a customer fail to make a payment, the utility company may file a claim against the bond to recover losses. Essentially, utility bonds are a tool used by utility companies to ensure they receive enough revenue to generate the power all of their customers expect and need.
A surety agent with The ProSure Group can help you obtain a utility bond quickly and at an affordable price! Begin the bonding process today by filling out our online form for a free quote, or contact us to speak with a surety expert!
When a utility customer is new or is expected to consume a large amount of energy, a utility provider may want to ensure they receive the entirety of what they're owed in full and on time by requiring the customer to purchase a utility surety bond. These bonds, like many others, act as a sort of financial guarantee between parties. In the case of utility bonds, if a customer falls behind on payments, the utility company can submit a claim and proof of late payments to the surety company. If validated, the surety will cover financial losses suffered by the utility company up to the full bond amount. It's important to note that the principal (utility customer) is responsible for reimbursing the surety for damages paid out.
The exact price paid for a utility deposit bond will vary. When a utility provider requires a new customer or business to post a utility bond, they will determine the amount of the bond based on several factors. These will vary from state to state and provider to provider. However, most determine the amount of the bond based on the estimated costs for the period of services and the credibility, risk, and financial liquidity of the customer.
In general, bond amounts are largely based on credit history. Well-qualified applicants with strong financial credentials could qualify to pay as low as 1% of the required bond amount. The required bond amount for a utility bond is determined by the utility company, and applicants should verify their required bond amount prior to bonding. Submit your quote request today! Our team of experts is standing by, ready to help you secure the bond you need at the lowest prices available.
Contact The ProSure Group! Our team of reliable surety experts has over two decades of experience and partnerships with over 30 companies in the surety industry. A surety bond agent with The ProSure Group will work diligently to get you the most competitive premium rate as quickly and easily as possible. Don't wait! Start the bonding process now by filling out our online form or by contacting The ProSure Group!
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