Sign Removal Bond
Serving Dallas, Fort Worth, Carrollton, Arlington, Austin, El Paso, Houston, San Antonio, Irving, Plano, Grand Prairie and throughout Texas
Sign removal bonds are necessary in many states in order to receive approval to post an outdoor advertisement. Sign removal bonds are also known as sign license bonds, sign permit bonds, outdoor advertising bonds, and sign contractor bonds.
A sign removal bond is a way for municipalities to ensure that all laws and regulations are followed for the construction and placement of the sign. It ensures that the municipality will not be liable for the cost of removing the sign if removal becomes necessary. These bonds are typically for large billboards placed on public land.
How It Works
Sign removal bonds are a contract between the advertiser, the state, and the bond issuer. The advertiser is the principal. The state is the obligee as it is obligating the purchase of the bond. The surety is the bond issuer which underwrites the bond.
Before the principal can obtain a license for his ad, it will purchase a sign removal bond from the surety. In exchange for the bond, the advertiser pays a premium to the bond issuer. The sign removal bond is an enforcement mechanism and insurance for the state that all regulations will be followed.
It gives advertisers a financial incentive to follow proper guidelines. However, in the event of advertisers violating regulations, the bond amount will be used to fund the removal of the advertising.
How Prices Are Calculated
The bond amount is determined by the state or local municipality. This can range from $2,000 to $25,000. Premiums are determined by the bond issuer and are calculated by examining the advertisers’ credit history, claims history, length of time in business, and financial statements to determine their premium.
How To Purchase A Sign Removal Bond
At TMD Surety Bonds, we work with multiple providers to help you find the best product for your needs. Due to our experience, volume, and relationships, we can find the best prices.
We only work 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 fast turn around time.