Luke Bochansky

(623) 533-3534

Utility Bonds

Both public and Private Utility Companies require a deposit from their customers to establish a utility service. A utility deposit bond, also referred to as a utility bond, is a guarantee that someone will pay their utility bill on time and is accepted in place of a deposit. A Utility bond is designed and required to protect the Utility Company. Utility Bonds are required by many public and private utility Companies such as Electric, Gas, Water & Phone. Some utility Companies require a utility bond in place of a deposit.

Each Utility Company has established guidelines for determining the requirement of a Utility Bond. A Utility bond may be required of a Company, or Individual, that has a history of delinquent payments, bad credit or does not have a sufficient payment history with the Utility Company. The Utility Company may also require a utility bond to waive a security deposit. If a Utility Company requires a Utility bond, they will not provide the service requested until the Surety Company issues the Utility Bond.

Cost

The cost of Utility bonds depends on a number of factors considered by Surety Underwriters. These factors include, but may not be limited to, the bond amount, length of time in business, Personal credit history, business balance sheet and/or personal financial situation among other things. Typically, the better the credit score and financial health of the business and person applying for the bond, the lower the quote will be for the Utility bond.

To apply for a Utility Surety Bond, you will need to provide the following information:

  • Name of the Utility Company requiring the bond (Also known as the Obligee)
  • Bond Amount
  • Bond Form - This is the document that contains the specific wording of the bond and can usually be obtained directly from the Utility Company
  • Payment Verification - Not always required but in some cases a Surety Underwriter may want proof that your Utility bill is paid to date. Your Bond Agent will notify you if this is necessary.

By: Luke Bochansky

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LukeBochansky

Luke
Bochansky
(623) 533-3534

About This Site

SuretyBonds.Biz is a website for Viking Bond Service, Inc. producers to provide information about frequently requested surety bonds in their words. Viking producers specialize in surety bonds of all types. Since bonds are the sole product provided by Viking, the producers are an excellent resource for information and assistance.