The average person produces 4.51 pounds of waste per day according to the Environmental Protection Agency, adding up to over 260 million pounds of trash per year across America. Ensuing that this refuse gets sent to the proper location instead of just being dumped anywhere and everywhere is the job of waste haulers. They are truly unsung heroes. They are also savvy business people because as long as they have a waste hauler bond they’re allowed to haul waste commercially, which can be a lucrative opportunity. Read on for a complete rundown of what to know about a waste hauler bond for someone interested in joining the industry.
What Is a Waste Hauler Bond?
In the simplest terms possible, a waste hauler bond certifies that anyone hauling waste does so properly. To understand how this arrangement works, consider the three parties involved:
- Principal – The waste hauler is the principal because they have to obtain the bond and pay for any claims filed against the bond.
- Obligee – The state agency that regulates waste is the obligee because they require the principal to have a bond. The obligee also has the right to file a claim against the bond if the principal does not follow the rules — in this case, whatever rules apply to waste haulers in their particular state.
- Surety – The company that issues the bond to the principal is the surety. The surety will also pay the obligee for any valid claims if the principal is unable or unwilling to pay. However, after paying, the surety has the right to collect whatever amount was paid out from the principal.
This is the most common arrangement, but there are exceptions. For instance, the obligee may be a county or municipal agency rather than one at the state level. Specific types of waste hauler bonds may also be required depending on what kind of waste is involved – eg., used cooking oil or tires. If you have questions about what kind of bond you need, contact the agencies in your area or reach out to the experts at Viking Bond Service.
Who Needs a Waste Hauler Bond?
Anyone intending to run a business around hauling waste needs to obtain a bond regardless of what state they operate in. Since waste is hazardous and must be transported and disposed of carefully, anyone involved must have a waste hauler license and any other professional credentials. Waste hauler bonds hold individuals accountable for their mistakes and misdeeds, which is why having a bond is almost always required before obtaining a license. Waster hauler licenses become invalid when bonds become inactive, and the penalties for hauling waste without a license range from fines to possibly even jail time. Therefore, waste hauler bonds are mandatory.
Why Do You Need a Waste Hauler Bond?
The easiest way to answer that question is to describe what would happen without waste hauler bonds. Imagine a hauler without a bond dumped a load of waste somewhere that isn’t allowed, possibly next to a residential area. The hauler is responsible for cleaning the mess up at their own expense, but they refuse. Without a bond, there’s no way for the state and municipal governments to hold the hauler responsible, so government has to pay for the clean up out of its own budget. Without a mechanism to hold offending parties accountable, there’s less incentive for these parties to follow the law. The cost of offenses also gets shifted from the offender to the government and ultimately to the public. A hypothetical situation like this is too uncertain to be sustainable. Knowing that, states (and other obligees) require people to get a waste hauler bond before they pick up a single piece of garbage.
What Are the Requirements for a Waste Hauler Bond?
The list of what to know about a waste hauler bond really boils down to the list of requirements for getting a bond. First, you will need to find a surety company like Viking Bond Service that issues bonds in the state where you operate. Next, you will need to submit a bond application. This will ask for details about your personal and professional finances, and may ask for supporting documentation. Upon completion, underwriters at the surety will use the application to evaluate your credit risk before quoting you a premium price. The premium (the cost of the bond) is a small percentage of its value, usually in the range of 3-5%. Bonds valued at $10,000 may only cost you around $100 for a year, making this a cost that’s mandatory but manageable. Once the premium is paid, the bond is active for 12 months. You must renew it before it expires by resubmitting your application and paying another 12 months of premiums.
Viking Bond Service – Your Bond Partner
You will need a bond for as long as your business hauls waste. That means the surety company you work with will be your partner from beginning to end. Make sure you’re partnering with the right company by working with Viking Bond Service. We can get you the bond you need quickly and affordably, even if you have bad credit. At every point – before, during, and after the application process – expect top-notch service from a team that cares about your businesses. Contact us with your questions or move straight to our online bond application. You can also get more information about how this process works by consulting a free resource we created – all about surety bonds.