What is a Grain Dealer Surety Bond?
Grain Dealer Surety Bonds ensure that the dealer fully compensates the original producer of the grain, and facilitate an honest and faithful working relationship between the two parties. They also guarantee the accurate accounting and documentation of all financial transactions, and ensure the dealer’s adherence to all applicable laws and regulations.
If the principal (grain dealer) does not comply with the terms of the bond, a claim can be filed. If the claim is validated, the surety will pay out up to the penal sum of the bond to resolve the claim. Once a claim has been resolved, all monies paid out by the surety must be reimbursed by the principal, including any attorney’s fees incurred by the surety in the defense of the claim.
Who is required to have a Grain Dealer Surety Bond?
Grain Dealer Surety Bonds are required for individuals and businesses that engage in the resale of grain products. Businesses who sell grain need to get licensed with local authorities in a number of states and this bond is often a requirement to obtain the license.
Which states require this Surety Bond?
Pacific Surety proudly offers Grain Dealer Surety 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 Grain Dealer Bonds?
Amounts for Grain Dealer Surety Bonds vary and are set by the local rules and statutes regulating the industry. Therefore, bond amounts and requirements will fluctuate from bond to bond. Please contact us with specific questions, and our knowledgeable underwriting staff will assist you.
How much do Grain Dealer Surety Bonds cost?
Pricing for Grain Dealer Surety Bonds varies, 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 all owners 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 Grain Dealer 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 a Grain Dealer Surety Bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for Grain Dealer 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 are these bonds purchased?
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.
How are claims handled?
Unlike insurance, which protects your business, Grain Lender Surety Bonds protect your clients. If an individual is harmed due to the principal’s activities or any violation of the governing laws, the harmed party can file a claim 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. The principal is 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.