A Guide to Obtaining an Alcohol Surety Bond for Your Business [Infographic]

If you plan to open a brewery, liquor store, bar, or any other business involved with alcohol, you may need an alcohol surety bond. Here are the quick answers to all your most important questions:

What is an Alcohol Surety Bond?

Bonds hold you responsible if you break state rules for alcohol-related businesses. States use them to maintain oversight over the alcohol industry and hold offenders responsible. You will need to obtain a bond, and you will need to pay claims filed against the bond. If you don’t, you will lose your liquor license.

Alcohol Surety Bond

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Who needs an Alcohol Surety Bond?

Every state has different rules and requirements. Most businesses that produce, distribute, sell, or serve alcohol need one of these bonds. Check with the state agency that regulates alcohol sales for more information – typically the same agency that issues liquor licenses.

How do Alcohol Surety Bonds Work?

If you violate state rules, the state can file a claim against your bond seeking compensation. When you are unable or unwilling to pay that claim, the surety company that issues the bond agrees to pay it for you. Afterwards, the surety collects the same amount from you. Eventually, you’re always financially responsible.

How much does an Alcohol Surety Bond Cost?

Bond limit requirements (the total amount the bond will pay) vary by state, and the cost is a small fraction of the limit. Usually around 5%. Exactly how much you pay for your yearly premium depends on your credit. You also need to pay for annual bond renewal and for any claims.

How do Alcohol Surety Bonds Affect Vendors?

States require bonds so they can hold alcohol vendors responsible. If you lose your bond for any reason, your liquor license becomes invalid and you lose the right to sell alcohol. Basically, without a bond, you don’t have a business.

How to Obtain an Alcohol Surety Bond

You can obtain a bond in as little as 48 hours through Viking Bond Service. Simply complete our bond application with some basic information about yourself and your business. You will get a quote back quickly, and once you pay the premium, the bond is active.