Water And Sewer Bond
What is a Water And Sewer Bond?
A water and sewer bond is required by a utility before a business is allowed to use their services. A utility incurs significant expense when they are setting up a new infrastructure. Therefore, a water and sewer bond offsets the risk of the business not making payments for the utility’s services.
Purchasing Your Water And Sewer Bond
1. Click the Buy Now button.
2. Fill out the easy bond form.
3. Confirm your order and select how you would like your bond documents delivered. Email or regular mail.
4. Pay for your bond.
5. If you chose to have your documents emailed, you will receive them within minutes.
It’s that simple and fast!
Pricing & Terms
Surety bond costs are a percentage of the full bond amount, which is usually determined by your personal credit. Providing industry experience, strong personal credit, and business/personal financials will help lower your bond rate. Reach out for a quote today.
How It Works
Water and sewer bonds are a contract between a utility, the bond issuer, and the business. The utility is the obligee as it mandates the purchase of the bond before agreeing to provide services. The bond issuer is the surety which collects a premium from the business and puts up the bond. The business is the principal.
If the business fails to make payments in a timely manner, then the utility will lead to a claim against the bond. In some ways, a water and sewer bond is a financial guarantee that the utility will be able to collect payment for its services in one way or another.
Unlike other surety bond amounts, which are mostly set by state or local authorities, bond values for water and sewer bonds are set by utilities based on the cost of connecting water and sewer lines and other services.
Premiums collected by the bond issuer depend on the bond amount and an evaluation of the business’ ability to make payments. Some of the factors in this evaluation include the business’ finances, credit history, liquidity, and payment history. Typically, premiums range between 1 – 6 percent of the total bond amount.
Unlike other surety bond amounts, which are mostly set by state or local authorities, bond values for water and sewer bonds are set by utilities based on the cost of connecting water and sewer lines and other services.
Premiums collected by the bond issuer depend on the bond amount and an evaluation of the business’ ability to make payments. Some of the factors in this evaluation include the business’ finances, credit history, liquidity, and payment history. Typically, premiums range between 1 – 6 percent of the total bond amount.
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 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.
Bond Purchase Process
1. Find Your Bond
2. Secure Pricing
3. Buy Online
Frequently Asked Questions
For the most part, yes. Bad credit can increase rates for license and permit bonds and most can also get approved for fidelity bonds regardless of credit. For contract bonds, larger contractors with poor credit can be approved with strong CPA-prepared business financials.
It’s a legally binding contract that you must sign to obtain a surety bond. The agreement guarantees that if you cause bond claims you will pay them in full.
You must fulfill the terms of the bond obligations, which vary immensely depending on bond type. Where you obtain your surety bond is important when it comes to understanding claims and avoiding them entirely. If you have any questions about what your bond does or doesn’t guarantee, reach out to our experts to help guide you along the way.
Looking to Get Started or Have Questions?
The bonding process can be confusing and cumbersome. Our surety bond experts are standing by and ready to answer any questions. Let’s get you bonded today!