Pest Control Bond
If you're in the pest control business and use pesticides, you'll want to familiarize yourself with pest control bonds. These bonds provide a way for governing bodies to ensure that pesticides are properly used. At Viking Bond Service Inc., we're committed to providing resources for businesses looking to meet state and local surety bond requirements. The following information will give you a general idea about how pest control permit surety bonds work.
What is a Pest Control Bond?
A Pest Control bond is a type of license and permit surety bond. The bond is put in place to provide a form of protection for consumers. The surety bond protects the consumer, who has entered into a contract for pest control services with the licensee, from fraud and/or dishonesty on the part of the licensee as well as damage to the consumer caused by the licensee's violation of applicable state laws and regulations. Usually, the pest control bond requirement is continuous, meaning it must be maintained to maintain licensure.
Pest control bond amounts vary by state and by purpose of the bond. California, as an example, has the following surety bond requirements for pest control:
- $4,000 Structural Pest Control bond requirement
- $5,000 Maintenance Gardener bond requirement
- $50,000 Aerial Pest Control bond requirement
- $75,000 Ground/Fumigations bond requirement
The state governing agency administering the licensing process will either dictate the correct bond amount required or provide a way to calculate it.
How Does a Pest Control Bond Work?
With all surety bond types, three parties enter into a legal agreement:
- Principal – The pest control provider. The principal must obtain the bond and pay the obligee for any valid claims they file against it.
- Obligee – The pest control client. The obligee can file a claim against the bond seeking compensation for damages caused by the principal.
- Surety – The bond underwriter. If the principal can't or won't pay to settle a claim, the surety guarantees payment to the obligee, but the principal must repay the debt to the surety promptly and with interest and fees added.
Who Needs a Pest Control Bond?
The answer depends on where a pest control provider works and what methods they use. Some (not many) states require pest control surety bonds (for providers), but requirements can also exist at the county and local levels. Likewise, most pest control bond requirements apply to professionals who use pesticides, but it's not universal. For help identifying the specific bonds you need, work with Viking Bond Service.
How to Get a Pest Control Bond?
Viking has a special program for Pest Control Bonds that can save our clients money. These bonds are typically easy to process. In most cases, minimal paperwork and documentation is required. Quotes for Pest Control bonds are usually obtained the same day or within 24 hours. Simply reach out to one of our Surety Bond Experts, and we'll help you get started.
How Much Do Pest Control Surety Bonds Cost?
The cost of a surety bond varies based on several factors such as the state you're being licensed in, the bond amount needed and your credit. The premium is calculated as a percentage of the bond amount. While higher credit scores lead to better rates, Viking Bond Service, Inc. also provides surety bonds for those with less-than-perfect credit. Quotes for these types of bonds typically come in between 1% and 3% of the requested bond amount. We're committed to providing you the bonding you need at the lowest price.
Do You Need to Renew a Pest Control Bond?
You need to have pest control surety bond coverage at all times to work legally. When you obtain that coverage, it typically lasts for a 12-month term, after which it expires unless renewed. Letting it expire can have serious, long-term consequences, so it's important to make renewal a top priority.
During renewal, the surety will perform another credit check to see how your credit has changed since the last renewal. If it has improved, the cost of the bond could be less than before, sometimes significantly less. However, if it has not, the cost will stay the same or go up. Paying the renewal premium that the surety quotes will reactivate coverage for another 12 months.
Since pest control bonds are a fact of life in this industry, treat them like any other business-essential – plan and budget in advance. Pest control bonds do not have to be expensive, complicated, or risky, but the biggest mistake people make is letting their coverage lapse.
Viking Bond Service For Pest Control Bonds
Viking Bond Service, Inc. is a qualified surety bond provider for businesses nationwide. Whether you run a local pest control business or a global enterprise, our Surety Bond Experts can assist you in understanding and meeting local bond requirements. When it comes to surety bonds, who you work with matters. That's why Viking Bond Service, Inc. is your preferred surety bond partner, no matter what your business goals are. To get started, contact us, give us a call at 1-(888) 2-SURETY (1-888 278-7389), or request a quote online today.
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