Modesto City License and Permit Bond
The City of Modesto imposes pre-licensing requirements before issuing enterprises necessary license and permit. This guarantees that applicants or businesses will operate according to city standards. Before being granted a license or permit, the business must first be bonded.
What is covered under these permits and licenses?
Modesto City issues several obligatory permits and licenses before applicants can secure their business certifications and conduct projects affecting any public property. These permits and licenses ensure standards are met and that the public will be compensated accordingly should applicants cause any licensing infractions, such as damages to public right-of-way, in the course of the project.
Normally, these pre-licensing obligations are imposed by the federal, state, and local government offices.
What is a License and Permit Bond?
A License and Permit Bond is also called a ‘commercial bond’. Before any business is allowed to operate, they are mandated by law to purchase and file for a License and Permit bond with the City of Modesto. Under the bond, the business agrees to operate in accordance with local laws and regulations to protect customers and the City of Modesto from financial damages.
License bonds help prevent businesses from conducting fraudulent practices or subpar work, effectively ensuring the government and consumers are insured and compensated. The details of the bond requirements will depend on the nature of the business. Thankfully, our surety bond experts can help you identify proper application requirements for said bond. Contact us to know more!
How does it work?
The bond must be issued by a surety bond provider certified by the City of Modesto. The parties in the agreement are the Principal (business or permit applicant), Obligee (City of Modesto), and Surety/Bond Company or Obligor (surety bond provider or insurance).
The Obligor will guarantee the compensation (performance bond) of the Obligee should the Principal fail to meet their standards or violate other licensing provisions. The Obligor will assess the validity of claims, where claims may only amount to the total penal sum agreed upon in the bond form. The Principal shall reimburse all expenses covered by the Obligor.
The Obligor is secured through an indemnity agreement as the licensed business is mandated by law for the full reimbursement of the claims, including legal fees and premiums. This agreement shall be made before the execution of the bond and shall ascertain the businesses responsibility over their dealings.
How much does it cost?
Normally, you will have to pay 0.5% of the total bond amount to obtain a Modesto City License and Permit Bond.
Want to know your standing? Visit here and get your surety bond quote today!
How can I apply for this bond?
At Surety Bond Authority, we are dedicated to help you get your bond the fast and easy way. Here is a step-by-step guide to help you get started.
To secure your license and permit bond, be sure to transact with a reputable surety company early. If you are ready to get yours processed today, you can APPLY HERE. Rest assured our expert surety bond agent will guide you from the time of your application until the issuance of your bond.
In the assessment phase, our underwriter will need the following information:
- Nature of your profession or business
- Credit score
- Financial strength
For the speedy processing of your application, ensure you have gathered and provided accurate information upon submission.
Once the assessment is done, we will promptly issue your bond and send it your way. Contact us today and get your bond issued in no time!