A utility payment surety bond is a type a type of surety bond that ensures a person or organization will pay for utilities on time. Utility companies often require customers who are expected to use a large volume of utilities toUtility Payment Surety Bonds be bonded before utility services are turned on. This protects the utility company from financial losses if the customer fails to pay their bill. The amount of the bond varies. The cost of the surety bond is usually between 1% and 5% of the bond amount, subject to a minimum premium and fees of $150. Surety1 will shop its many markets to procure the right price at the right terms.

How to Get a Utility Payment Surety Bond

At Surety1.com we make it easy to obtain this surety bond. Our simple, three step process is:

  1. Complete the easy to navigate and secure online application1
  2. Review the free, no obligation quote from one of Surety1’s professional surety bond agents, usually within one business day.2
  3. Sign some paperwork and pay the bond premium

Once these steps have been completed, the Utility Payment Surety Bond will be shipped to the bond applicant.
1 -The name of the applicant on the surety bond application must match exactly the full legal business name of applicant for the utility service.
2 -Subject to underwriter approval, based on aggregate surety bond exposure, additional underwriting information may be required. 

Surety1.com is a service of AssuredPartners one of the largest and fastest growing insurance agencies in the nation. Representing over a dozen surety bond companies, Surety1.com is the premier online provider of surety bonds nationwide since 2003.

Who Needs This Bond?

While many utility companies do not require surety bonds, when required it is typically required for businesses. Seldom are they required for residential customers.  If the customer fails to pay their utility bill on time, the utility company can file a claim against the bond. The surety company will then pay the utility company the amount of the claim, up to the limit of the bond. The customer is then responsible for reimbursing the surety company for the claim amount.

Utility payment surety bonds can be a helpful way for businesses to obtain utility services in lieu of providing a cash security. However, it is important to note that utility payment surety bonds are not a replacement for paying utility bills on time. Customers who fail to pay their utility bills on time may have their utility services turned off and may be subject to late fees and penalties. Here are some examples of when a utility payment surety bond may be required:

  • A new business is opening and needs to establish utility service.
  • A business is expanding and will be using a significantly higher volume of utilities.
  • A business has a history of late payments or non-payment.

If the surety company pays a claim on the bond, it will seek restitution from the bond principal.

How to Get Your Utility Payment Surety Bonds

  1. Complete an online application. It’s free and no-obligation.
  2. One of our surety experts will contact you with a firm quote and an agreement to sign.
  3. Provide payment and your signed agreement, and then you will receive your Surety Bond!

If you have any questions, please call us at 877-654-2327.

How to Get Bonded

1. Apply Online
Using our Free & Secure Application
2. Get Your Free Quote
Applications are No-Obligation
3. Get Your Bond
Most Bonds are Approved in 1-2 Business Days

Surety Bond Experts

Surety1 was founded in 2003 and helps thousands of clients find the best prices on their surety bonds. We take pride in our work so that we can give you great service. Learn more about Surety1.

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