What is a Fuel Supply Payment Surety Bond?
Part of the Wholesale Supply Agreement with World Fuel Services, Inc. includes the posting of a surety bond. This surety bond guarantees payment for resale of fuel. If payment is not made in a timely manner, or any of the terms of the Supply Agreement are violated, World Fuel Services can file a claim on the bond for reimbursement. The amount of the surety bond varies and is based on the amount of fuel being provided, per the wholesale supply agreement. The surety can cancel the bond at any time by providing written notice to World Fuel Services Inc. 30 days prior to the effective cancelation date.
Which states require Fuel Supply Surety Bonds?
Pacific Surety proudly offers Fuel Supply Payment Surety bonds for World Fuel Services, Inc in all 50 states. If you have a fuel supply contract with World Fuel Services, Inc., we can offer the Fuel Supply Payment Surety Bond regardless of your location.
What is the bond amount for Fuel Supply Payment Surety Bonds?
Bond amounts for a Fuel Supply Surety Bonds vary and are based on amount of fuel being provided. Bond amounts can also fluctuate based on the fuel supply agreement. Please contact us with specific questions, and our knowledgeable underwriting staff will assist you.
How much does a Fuel Supply Payment Surety Bond cost?
Pricing for Fuel Supply Payment Surety Bonds will vary, and your premium will be based on the following factors:
- 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 Fuel Supply Payment 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 Fuel Supply Payment Surety Bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for Fuel Supply Payment 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 a Fuel Supply Payment 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 a Fuel Supply Payment Surety Bond protect?
Unlike insurance, which protects you, your home or your business, Fuel Supply Payment Surety Bonds guarantee payment for resale of fuel. If payment is not made in a timely manner, 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.