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Michigan Marijuana Bond

As the Michigan marijuana industry evolves and expands, expect a special type of surety bond called a marijuana bond to become a common requirement for businesses involved in the cultivation, processing, distribution, or sale of marijuana. This quick guide covers the essential information.

What is a Michigan Marijuana Bond?

All surety bonds hold the bonded party (in this case the marijuana business) financially responsible if it engages in unlawful or unethical behaviors. Surety bonds also give the victims of that behavior a way to pursue financial compensation for their damages. Essentially, bonds are a way to hold businesses accountable while ensuring justice for anyone negatively affected by those businesses.

How does a Michigan Marijuana Bond Work?

If an individual or a state regulatory agency believes a Michigan marijuana business has violated the law, they may file a claim against the surety bond. The surety agency that issues the bond will then investigate the claim and establish the truth of the details before settling all valid claims in full. When the surety agency settles a claim, the bonded party must then pay that debt back with interest and fees on top. It always costs less to avoid claims or to settle issues before they go into the claims process.

Who needs a Michigan Medical Marijuana Bond?

State regulators decide who needs a marijuana bond and in what amount. Bond requirements also evolve over time, meaning that businesses not required to have a surety bond now may require one at a later date. Act fast to get a bond so that failure to get a bond or unexpected bonding issues don't become an obstacle for your business.

Why is it necessary to have a Michigan Marijuana Bond?

Regulators create surety bond requirements in order to discourage unlawful behavior. They also use the bonding processes as a mechanism for enforcement and restitution. When required, a business won't be granted a business license until it can prove it has the required surety bond. Should that bond ever lapse, the license will too.

Who are the parties involved in a Michigan Marijuana Bond?

The bonded party is just one of three parties involved:

  • The principal is the business that obtains the bond and takes responsibility for paying claims.
  • The obligee is the regulatory agency that writes the bond requirements and has the right to file claims when those requirements aren't met.
  • The surety is the agency that issues and backs the surety bond. A surety guarantees payment for any valid claim an obligee submits, but the principal must always pay that amount back.

How much does a Michigan Marijuana Bond cost?

Surety bond costs (known as premiums) depend on three factors: the type of bond, the size of the bond, and the credit of the bond applicant. Typically, premiums are a small percentage of the bond's total value with lower credit scores resulting in higher premiums. If you're worried about bad credit affecting your ability to get a Michigan cannabis surety bond, rely on Viking Bond Service for help.

How to apply for a Michigan Marijuana Bond

To get a surety bond quote in as little as 24 hours from Viking Bond Service, simply complete a standard bond application, provide a copy of the bond requirements, supply a financial statement, and give our underwriters any other documents they ask for. After you pay the quoted price to activate the bond, you receive a document proving you've met the Michigan marijuana bond requirements.

Viking Bond Service for Michigan Medical Marijuana Bonds

Take the hassle out of meeting surety bond requirements with Viking Bond Service. Our extensive experience and abundant resources make getting a surety bond easy and affordable. Complete an online application at your own convenience. Or contact our team with questions at 1-888-278-7389 or through the contact form on this page.

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