Peddler And Solicitor Bond
Serving Dallas, Fort Worth, Carrollton, Arlington, Austin, El Paso, Houston, San Antonio, Irving, Plano, Grand Prairie and throughout Texas
Many states require peddlers and solicitors to obtain a surety bond as a prerequisite for obtaining a license. The purpose of this is to protect the state and customers from any damages or misrepresentations that arise.
Additionally, the bond issuer takes on the burden of making sure that the peddler and solicitor will abide by laws when they sell their products. If a dispute arises and the peddler or solicitor is found to be at fault, damages will be paid by the bond issuer up to the value of the bond.
How Peddler And Solicitor Bonds Work
Peddler and solicitor bonds are contracts between the peddler and solicitor, the state, and the bond issuer. Typically, local and state authorities determine an appropriate value for the bond in order to protect themselves and customers from fraud or illegal behavior. The peddler or solicitor (who purchases the bond) is called the principal. The state is the obligee, since it creates the mandate to purchase the bond before issuing a license. The surety company is the bond issuer.
How Prices Are Calculated
The total value of the bond is determined by state and municipal authorities. Typically, premiums are a small percentage of this amount which can vary based on the applicant and project.
The bond issuer determines the premium by making an evaluation of the peddler or solicitor by examining their financial history, prior claims, location, and type of business to determine a bond premium. The bond premium differs on the perceived riskiness based on these factors. Until the peddler or solicitor secures this bond, they cannot acquire a license.
How To Purchase A Peddler Or Solicitor Bond
At TMD Surety Bonds, we work with multiple providers to help you find the best peddler and solicitor bonds. Due to our experience, volume, and relationships, we find the best prices.
We work only with the most reputable surety providers and have simplified the entire process so you can focus on what matters – your business. We are known for our exceptional customer service and quick turnaround time.