What is an Electric Service Provider Surety Bond?
Electric Service Provider Surety Bonds protect the clients of electric service providers against damages and losses resulting from the company’s nonperformance, fraud, misrepresentation or other legal violations. The bond is required as a form of proof of financial guarantee in order for providers to offer electric services in the retail market to the public. Electric Service Provider Surety Bonds act as a mechanism to the obligee to show financial security and credit worthiness of the entity providing electric service.
Which states require Electric Service Provider Surety Bonds?
Pacific Surety proudly offers Electric Service Provider Bonds in the following states:
If you do not see your state listed, please contact us and our knowledgeable underwriters will assist you.
What is the bond amount for Electric Service Provider Surety Bonds?
Bond amounts for an Electric Service Provider Surety Bonds vary and are set by the local rules and statutes regulating the industry. Therefore, bond amounts and requirements will fluctuate from state to state. Please contact us with specific questions and one of our knowledgeable underwriting staff will assist you.
How much does an Electric Service Provider Surety Bond cost?
Pricing for Electric Service Surety Bonds will vary, and your premium will be based on the following factors:
- State the bond is required in
- Amount of the bond
- Term length of the bond
- Personal credit for anyone with at least a 10% ownership stake in the business
Individuals with good credit can expect to pay between 1%-5% of the bond amount. Qualified applicants could pay as little as $100 annually for a $10,000 Electric Service Provider Surety Bond. To find out how much your bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I get an Electric Service Provider Surety Bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for Electric Service Provider Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants, regardless of how bad their credit is. Our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. Applicants with substandard credit can expect to pay 5%-10% of the bond amount in premium. To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.
How do I purchase an Electric Service Provider Surety Bond?
The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7873 and one of our Underwriters will assist you in applying for your bond.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.
Who does an Electric Service Provider Surety Bond protect?
Unlike insurance, which protects you, your home or your business, Electric Service Provider Surety Bonds protects the obligee by guaranteeing the financial worthiness of any entity providing electric services. In the event that the purchased services are not rendered or refunded in full where agreed, a claim can be filed by the obligee with the surety company for relief. If the claim is valid, the surety will pay up to the penal sum of the bond to resolve the claim. You are then required to reimburse the surety for all monies paid out, including any attorney fees incurred by the surety in the defense of the claim.
Claims can be detrimental to your business. Not only do they cause financial harm, they make it very difficult, if not impossible, to get bonded again.