Livestock Dealer Bond
Livestock dealers play an interesting and important role in America's agriculture system and food supply. Plus, it's a job that can offer variety, excitement, and impressive compensation for people who know how to apply their skills and talents. But first, there are some requirements that must be met. A career as a livestock dealer starts by obtaining a bond for a livestock dealer license. You must have a license in all 50 states to buy or sell livestock, and you must have a surety bond in all 50 states to get that license. This blog covers all of the basics about livestock dealer bonds.
What is a Livestock Dealer Bond?
States have laws that apply to livestock dealers. If a bonded dealer breaks the law and it results in financial losses, any persons who lost money may file a claim against the livestock dealer bond for compensation.
The company that issues and underwrites the bond will then investigate the claim to verify that everything is true and accurate. If so, the livestock dealer must pay for the claim. By signing the bond agreement, the livestock dealer accepts legal liability for all claims.
In the event that a livestock dealer can't or won't pay for a claim, the bond company agrees to pay the claimant in full up to the amount of coverage the livestock dealer bond carries. However, the livestock dealer still has liability for the claim, so they must repay the bond company the settlement amount with interest and fees added to the debt. Leaving the debt unpaid will result in loss of bond coverage and possibly legal action.
Who Needs a Livestock Dealer Bond?
Parties who should prepare to get this bond include dealers who run auction markets, buying stations, stockyards, and concentration points. If you have questions about specific livestock dealer surety bond requirements, direct them to the state agency responsible for issuing livestock dealer licenses.
Anyone who needs a bond for a livestock dealer license will also need to keep their bond active and in good standing for the license to remain valid. That makes preserving and renewing bond coverage extremely important.
Avoiding claims and settling them promptly is the best way to keep coverage active. Coverage will also need to be renewed at the end of the bond term, which is usually 12 months. The bond company will provide regular reminders about the renewal date; however, you should remember to budget for the renewal premium, as it may change year to year based on personal and business finances. Failure to renew bond coverage can make it impossible to work legally.
What Does the Livestock Dealer Bond Cost?
A livestock dealer bond must have a minimum amount of coverage. That amount is set by the state and varies across the country. The cost will be a small percentage of the coverage limit. The cost of a surety bond is unique to each bond seeker and based on their credit score and financial history.
People with excellent credit may pay a premium as low as 1% of the coverage total, while others with less-than-excellent credit will pay a higher percentage. Viking Bond Service has a program to help people with bad credit get approved for all surety bond types more often and still pay competitive rates.
How to Get a Livestock Dealer Bond
The process to get a livestock dealer bond starts by getting a quote for the premium price. That will involve:
- Completing a standard bond application
- Giving permission to run a credit check
- Supply additional documents (when necessary)
The bond company uses this information to customize the premium price. Then you simply need to pay the premium to activate bond coverage and satisfy this part of the livestock dealer license requirements.
Livestock Dealer Bonds from Viking Bond Service
Getting a bond for a livestock dealer license doesn't have to be a chore. Livestock dealers from across the country choose Viking Bond Service as their long-term bond partner because we make the bonding process fast, easy, and affordable. Find out for yourself what makes us a top nationwide bond company. Request a quote at your convenience – it's free with no obligations! For more information about livestock dealer bonds, contact us or call 1-888-2-SURETY (1-888-278-7389).
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