{"id":1190,"date":"2021-06-18T09:00:00","date_gmt":"2021-06-18T09:00:00","guid":{"rendered":"https:\/\/www.performancesuretybonds.com\/blog\/?p=1190"},"modified":"2022-01-24T16:03:31","modified_gmt":"2022-01-24T16:03:31","slug":"how-to-determine-which-commercial-cannabis-surety-bond-you-need","status":"publish","type":"post","link":"https:\/\/www.performancesuretybonds.com\/blog\/how-to-determine-which-commercial-cannabis-surety-bond-you-need\/","title":{"rendered":"How to determine which Commercial Cannabis Surety Bond You Need"},"content":{"rendered":"\n

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<\/a> broadly known as commercial cannabis surety bonds. <\/p>\n\n\n\n

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!<\/p>\n\n\n\n

What is a <\/strong>Commercial Cannabis Surety Bond<\/strong>?<\/strong><\/h2>\n\n\n\n

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. <\/p>\n\n\n\n

How does a <\/strong>Commercial Cannabis Surety Bond<\/strong> work?<\/strong><\/h2>\n\n\n\n

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\u2019s 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. <\/p>\n\n\n\n

What is the purpose of a <\/strong>Commercial Cannabis Surety Bond<\/strong>?<\/strong><\/h2>\n\n\n\n

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.<\/p>\n\n\n\n

Who needs a <\/strong>Commercial Cannabis Surety Bond<\/strong>?<\/strong><\/h2>\n\n\n\n

That depends on many factors: The state you operate in, the type of business you run etc. Some cannabis businesses won\u2019t need any bonds, others will need just one, and there are some who will need multiple. In all cases, however, it\u2019s illegal to operate without the required bonds, and it may be impossible to open a business either. That\u2019s why it\u2019s 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. <\/p>\n\n\n\n

Who are the parties involved in a <\/strong>Commercial Cannabis Surety Bond<\/strong>?<\/strong><\/h2>\n\n\n\n