What is a Wine Surety Bond?
Wine Bonds are financial guarantee surety bonds to assure the government that excise taxes will be paid and that the principal (wine maker) will comply with all federal laws and regulations. If the principal fails to pay their taxes or conduct business in a lawful manner, the harmed party can file a claim with the surety company.
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 responsible for reimbursing the surety for all monies paid out, including any attorney fees incurred by the surety in defense of the claim.
Who needs a Wine Bond?
The Alcohol and Tobacco Tax and Trade Bureau (TTB) licenses and regulates wine professionals throughout the United States. A critical part of the licensing process is the filing and maintaining of a federal Wine Surety Bond. Any individual or company that engages in the selling, manufacturing or distributing of wine is required to have this bond.
How much are Wine Surety Bonds written for?
There are two types of coverage for wine bonds surety bond, each with varying amounts:
- Wine Operations: Bond amount is based on the tax liability of all wine or spirits in transit or unaccounted for at any one time
- Minimum: $1,000
- Maximum: $50,000
(If the tax liability exceeds $250,000, the bond amount is $100,000)
- Tax Deferral: Bond amount is based on total amount of tax, at any one time, determined but not paid on wine removed from the bonded premises for consumption or sale
- Minimum: $500
- Maximum: $250,000
(Exception: $1,000 of the wine operations coverage may be allocated to cover the amount of tax which, at any one time, has been determined but not paid, if the total operations coverage is $2,000 or more)
It is recommended that you consult the TTB for specific bond amounts prior to bonding.
How much do Wine Surety Bonds cost?
Pricing for Wine Surety Bonds will vary. Your premium for the bond will be based on a number of factors, including:
- Amount of the Bond
- Personal Credit of the Business Owner
An underwriter will thoroughly review your application, and highly qualified individuals can expect to pay between 1% and 3% of the bond amount. Qualified applicants could pay as little as $500 annually for a $50,000 surety bond. To find out how much your Wine Surety Bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I get a Wine Surety Bond with bad credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for Wine 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. 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 Wine 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 1-866-722-7837 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.