Surety bonds are now required for many businesses that sell nicotine vapor products in the state of Georgia. If you’re a part of the vape industry, it’s vital to understand how Georgia vapor surety bonds work and how they affect your business. Rely on the team at Viking Bond Service for good information.
When did Georgia Vapor Surety Bonds become mandatory?
The Georgia legislature passed a bill in July, 2020 mandating all sellers of vapor or other alternative nicotine products to have a surety bond valued at no less than $1,000 at all times. All new and existing vape shops, and many stores that sell vape products as part of a diverse inventory, will need a Georgia Vapor Bond.
What is a Georgia Vapor Surety Bond?
This type of surety bond holds the bonded party (in this case the vapor seller) financially responsible if they violate Georgia state laws applicable to vapor sales. If the state agency responsible for regulating vape sales believes a business has violated any law, it may file a claim against the surety bond seeking financial compensation. The surety agency that issues and backs the bond will then launch an investigation to determine if the vapor seller did what they’re accused of in the claim. If so, the surety agency settles the claim in full without further delay. Surety bonds guarantee payment for valid claims – but the surety agency does not accept financial responsibility. When the surety agency settles a claim, the bonded party must pay that debt back in full with interest and fees added.
Why did lawmakers create the Georgia Vapor Bond Requirements?
In the same year that lawmakers created the Georgia vapor bond requirements they also raised the taxes on vapor products and raised the age someone must be to buy vapor products from 18 to 21 – a wave of legislation meant to bring oversight and accountability to the Georgia vapor industry. Lawmakers often require business in sensitive or emerging industries to obtain surety bonds as a way to protect the public, encourage upstanding conduct, and hold businesses accountable for rule breaking. That same rationale applies here: lawmakers created Georgia vapor bond requirements to promote higher standards within the statewide vapor industry.
How much will a Georgia Vapor Bond cost?
Not much. The cost (called the premium) is only a small percentage of the bond’s $1,000 value. Premium prices depend on the bond seeker’s credit score and financial history. People with great credit will pay less. Alternatively, someone with a credit score below 700 or a bankruptcy on their record will pay more, but not drastically so. Make sure bad credit doesn’t affect your ability to get approved for affordable surety bonds in Georgia – work with Viking Bond Service to find options regardless of your credit.
Who Will Need a Georgia Vapor Bond?
Anyone involved with the sale of vapor-based nicotine products, either directly or indirectly, may potentially need a surety bond to continue operating legally. Fortunately, the cost of this bond is relatively low, as we established earlier. And with the help of a top-notch surety agency like Viking Bond Service, obtaining a surety bond doesn’t have to be a confusing or time-consuming process. If you’re unsure whether you need a surety bond, contact our team for more information.
How to Apply for a Georgia Vapor Surety Bond
There are just several steps involved with applying for one of these surety bonds. First, you will need to complete a standard bond application. It will ask for information about your background, your finances, and your vapor sale business. Your business partners may also need to fill out surety bond applications. Next, you will need to supply a copy of the Georgia surety bond requirements written by state regulators. A financial statement may also be necessary, and all bond applicants will undergo a credit check. Underwriters at the surety agency will use this information to evaluate an applicant’s risk, meaning their likelihood to cause claims and to pay the surety agency back for settlements. As mentioned earlier, bad credit will lead to a higher quoted price. After paying the premium, the Georgia vapor bond stays active for 12 months before it needs to be renewed. The renewal process works much like the initial application: submitting some basic documentation and having your credit examined. If your credit standing has gone up or down since your last application, your premium price could do the same.
Viking Bond Service – A Partner To Georgia Vapor Sellers
The Georgia vapor bond requirements may be new, but they don’t need to catch you and your business off-guard. The most important thing is to comply with this mandate sooner rather than later. Viking Bond Service makes that easy by offering all the resources you need along with a helpful team to serve you throughout the process. Talk to one of our bond experts by calling 1-888-278-7389 or by sending your question through the contact form on this page. Or get the bonding process started right now! Complete our online bond application at your convenience.