How to determine which Commercial Cannabis Surety Bond You Need

How to determine which Commercial Cannabis Surety Bond You Need

If you run a business involved with the booming commercial cannabis industry – as a grower, producer, distributor, seller, or in another role – you may need a type of surety bond broadly known as commercial cannabis surety bonds. 

In this blog, we will explain how these bonds work and why you need one. Then, we will wrap up by showing you how to determine which commercial cannabis surety bond(s) you need. Get all the important information in one place!

What is a Commercial Cannabis Surety Bond?

A commercial cannabis surety bond holds the bonded party (eg. the cannabis business) financially accountable if it violates state and local laws that apply to the cannabis industry. States that have legalized cannabis for either medical or recreational use have also taken steps to regulate the cannabis industry carefully. Businesses will often need a commercial cannabis surety bond as part of licensure requirements, but they may be required for other reasons at both the state and local levels. 

How does a Commercial Cannabis Surety Bond work?

If a consumer or regulator believes that a cannabis business has violated applicable laws and codes of conduct, they may file a claim against the commercial cannabis surety bond seeking financial compensation equal to the damages caused. Provide that the claim has merit, the surety agency that backs the bond will settle the claim in full. The bonded party must then pay the surety back the amount of the claim, with interest and fees added. It is the surety’s right to use whatever legal means necessary to collect the debt, which the bonded party agrees to accept liability for when they sign the surety bond agreement. 

What is the purpose of a Commercial Cannabis Surety Bond?

Surety bonds hold a business accountable, financially, when it breaks the rules, which then creates an incentive to follow the rules. Surety bonds also provide a path for anyone, whether an individual or the public at large, harmed by a cannabis business to seek out a settlement and see justice served. Surety bonds are an effective way to regulate industries and encourage ethical/lawful behavior.

Who needs a Commercial Cannabis Surety Bond?

That depends on many factors: The state you operate in, the type of business you run etc. Some cannabis businesses won’t need any bonds, others will need just one, and there are some who will need multiple. In all cases, however, it’s illegal to operate without the required bonds, and it may be impossible to open a business either. That’s why it’s vital to determine which commercial cannabis surety bonds you need and obtain them immediately. Get help with both from Viking Bond Service – a nationwide surety agency serving cannabis-based businesses across the country. We can help you understand exactly which commercial cannabis surety bonds you need. Next, you can obtain those bonds from us, quickly, easily, and affordably, so that your bonding needs are fully met moving forward. 

Who are the parties involved in a Commercial Cannabis Surety Bond?

  • Principal – The cannabis business that obtains the bond, keeps it renewed, and pays for any and all claims. 
  • Obligee – The party being protected by the surety bond. Often, the party that creates cannabis bond requirements and has the right to file claims against the bond. 
  • Surety – The company that bonds the principal and settles claims with the obligee. The principal must pay the surety back for any amount paid to the obligee, plus interest and fees. 

How to get a Commercial Cannabis Surety Bond?

No matter what kind of cannabis bond you need, the application process will include: filling out a standard bond application with information about your business and background; agreeing to undergo a credit check; and giving the surety any other documents it asks for. With the right surety agency, one like Viking Bond Service, applying for a cannabis bond couldn’t be easier. And we strive to keep them affordable too. Expect to pay a small percentage of the bond’s total value, less or more depending on your credit. If you are concerned that your credit score or history could make it hard to get the cannabis bonds your business needs, we can help. Take advantage of a special program from Viking Bond Service designed to get more people approved regardless of credit. 

Why you should get your Commercial Cannabis Surety Bond from Viking Bond Service

Surety bonds build trust in a business and an industry as a whole – so they’re very important to a marijuana industry that’s trying to grow, gain legitimacy, and fulfill its complete potential. Since most businesses in the cannabis industry will need bonds, most will need a bond partner as well. And many have chosen Viking Bond Service as that partner already. We take the confusion, hassle, and unnecessary expense out of bonding, forming true partnerships with the businesses we serve. Get your cannabis bond needs covered once and for all. Viking Bond Service has everything you need. 

Get a Commercial Cannabis Surety Bond from Viking Bond Service

You can request a quote at any time. It costs nothing to explore how much a bond might cost, and you’re not obligated to move forward with bonding. Either way, expect to get a full quote for a cannabis bond in as little as 24 hours. Please contact us with your questions, or call us at 1-888-278-7389.