Why would you need to get a surety bond if you are issuing fishing licenses? Because the law requires it. Your state may require you to secure a fishing license bond if you want to sell fishing licenses. Same goes for selling hunting licenses.
Fishing or hunting license bond classifies as a license and permit type of surety bond. It ensures that sellers and their businesses will abide by the state laws and regulations, pay due taxes and fees on time, and protects license buyers from license seller fraud.
In this blog, we tackle the fishing license bond in brief; who needs a fishing license bond, how do fishing license bonds work, and how much this type of surety bond costs.
But first, let’s ask the question: Why do you have to get a license to fish in the first place?
When states decree fishing regulations, they apply limits to the amount any fisherman can catch and haul in a day. These limits are contained in the information on fishing licenses, so people who fish for personal or business reasons become informed of their fishing limits.
No matter what state you choose to go fishing in, you will need to carry a license. Though requirements may vary from state to state, many states offer separate licenses for residents and non-residents that need to be followed to protect and preserve the state’s fish populations.
Who gets fishing license bonds?
Any business is required to purchase surety bonds before they can legally sell fishing licenses in certain areas. They include, but not limited to:
- Recreational/sporting goods stores
- Fishing online retailers/wholesalers
- Fish, boat, and wildlife conservation commissions
- Government authorized license sales dealers
- Specialist fishing tackle shops
- Any game hunting/freshwater/saltwater fishing business
Now if you are fishing for a license bond, you must submit your business to a credit check, have your application approved, and go through additional verification screening processes. The surety underwriter will make decisions based on your credit assessment.
The fishing license bond guarantees that the business will submit the fishing license fees to the applicable state agency. These bonds are written at will with a signed application.
How does a fishing license bond work?
A fishing license bond works just like other surety bonds – with three parties involved in the process:
- Obligee: The regulation department or state agency that requires the principal to secure a fishing license bond.
- Principal: The business that needs to comply with the state laws and regulations regarding selling fishing licenses through surety bonds.
- Surety Company: The underwriter and surety bond provider that offers financial guarantees for the principal.
For instance, a saltwater fishing business secures a fishing license surety bond as mandated. However, the business fails to fulfill the requirements of the surety bond. In this case, the state agency may file a claim against the bond. The surety company involved will assess the claim and consider if paying the claim is necessary. If the claim is found to be true, the principal (the business) will need to indemnify the surety company for the amount paid out to the oblige (the state agency).
Additionally, the principal (the business) will be required to renew the fishing license bond each year. If not, they will risk losing that license to sell fishing licenses through their business.
How much does it cost to get a fishing license bond?
The cost depends on how much bonding coverage your state requires. Most companies shell out just $100 to $200 for a year of fishing (and hunting) surety bond coverage.
A fishing license bond costs and requirements differ considerably from the bond amounts and regulations that surround each license, which is implemented on a state level.
So do not be caught without one. Surety Bond Authority Inc. helps you get bonded today! Call us at 800-333-7800 now.