Pest control bonds are designed to protect consumers and ensure that any business that uses pesticides obeys all state and federal regulations regarding the use of these substances. These license and permit bonds need to be maintained as long as the business remains operational.
Not All States Require Pest Control Surety Bonds
The state laws of the area your business operates in will determine whether you need a pest control surety bond to work in the state. For example, the following states require pest control bonds:
The Alabama Department of Agriculture requires pest control operators to maintain a $2,500 pest control bond.
The Arkansas State Plant Board requires bonding as part of the Pest Applicators license application process. Along with Tennessee, Arkansas has the highest pest control surety bond requirement set at $50,000.
As of January 1st, 2014, California’s Department of Consumer Affairs set the pest control bond requirement at $12,500.
Tennessee sets the joint highest bonding requirement, which is tied with Arkansas, at $50,000 for the first 3 years. It then drops to $10,000.
Surety Bonds are a Three-Way Contract
A pest control bond is a type of license and permit bond that provides a form of financial backup that consumers can claim against if a pest control business fails to follow state and federal laws and causes damage to their property or person. A pest control surety bond is a contract between three parties:
- The oblige: the state agency that requires the business to purchase the bond
- The principle: the pest control business that purchases the bond
- The surety: the bond issuer who underwrites the bond
A bond is not insurance; if the surety pays out a claim made against the bond, the principle will be required to repay the surety in full.
Securing a Pest Control Surety Bond
Finding a pest control surety bond is a simple process when you work with an experienced bonding company. You’ll submit an online application form in addition to supporting documentation that shows your credit score and business experience. You’ll then receive a bond quote. Once you’ve paid the premium in full your bond will be underwritten and issued!
To make sure you get the right bond for your business it’s essential to talk to a surety bond agent who is experienced in securing pest control bonds in your state! Viking Bond Service is here to help you find the right bond at the best price. Apply online today!