The California Encroachment Surety Bond, also called a Performance Bond, is required by the State of California Department of Transportation in order to obtain an Encroachment Permit.
An encroachment permit is required for all those who would like to place encroachments (tower, pole, pole line, pipe, pipeline, fence, billboard) within, under or over State highway rights of way.
Any entity interested in obtaining a permit must a Standard Encroachment Permit Application, along with various supporting documents such as plans, location map, letter of authorization, liability insurance, an application fee, and a California Encroachment Surety Bond.
The bond ensures the applicant will perform maintenance work, to at least as good condition as when the permit was entered upon, as determined by the District Engineer of The California Department of Transportation. If not repaired sufficiently, the applicant will have to pay damages in a sufficient amount to properly restore the infrastructure to its original condition. Under this bond, the applicant will reimburse the California Department of Transportation for all inspection costs incurred.
Essentially, a California Encroachment Surety Bond states that if there is any damage made to public property while working on private property, the public property will be restored to its previous condition by the applicant.
It is important to note this bond is not insurance. While the surety company (the company that issues the bond) will directly pay the California Department of Transportation for any claims, the principal (the permit holder) must pay back the surety company in full.
The bond amount for the California Encroachment Surety Bond, which is also a type of Performance Bond, varies depending on the county and the project. You will need to contact the CA Department of Transportation to verify this bond amount prior to submitting a bond application.
To obtain a California Encroachment Surety Bond, all you need to do is take a few minutes to fill out our free online application! Within one business day one of our licensed agents will contact you with a no-obligation quote for the price to obtain your bond (the “premium”). Once any necessary paperwork is signed and the premium payment is processed, your surety bond will be shipped to you via USPS Priority Mail (overnight shipping options also available).
The surety bonding experts at Surety Solutions Insurance Services, Inc. (Surety1) are here to help you get bonded quickly and reliably. We work with over a dozen “A” rated surety markets to ensure we find you the lowest rate for your bond. We are also licensed in all 50 states and maintain an A+ rating by the Better Business Bureau!
Located in Rancho Cordova, California.