San Luis Obispo County Well Driller Bond
The County of San Luis Obispo requires businesses in the area to apply for bonds in order to secure a well drilling permit and activate their business licenses. These requirements are needed to ensure the compensation of the public should accredited businesses cause any licensing infractions, like damages to public grounds, in the course of the project.
What is a Well Drilling Permit?
A well drilling permit is a validation document and legal requirement that allows the operation of well-drilling companies. The retrieval of resources like groundwater, natural gas, brine, petroleum, and other natural assets is made possible through well drilling.
The San Luis Obispo County Counsel will examine the bond posted for the issuance of the well drilling permit. No drilling work shall ensue without securing the proper permits for the project. The County may impose a penalty – possibly double the permit fee – on applicants working without the proper licenses, should they be subsequently approved to operate. A copy of the permit must be maintained onsite at all times.
For more information, please visit the San Luis Obispo County Office or read further on the well driller’s resources.
What is the San Luis Obispo County Well Driller Bond?
Prior to the conduct of any public work that may affect public property and safety such as well drilling, businesses involved must secure a well drilling permit bond with the California Department of Insurance. The bond guarantees that developers or permittees will adhere to the County’s codes, deliver expected outcomes to quality, and strictly follow engineering standards.
How does it work?
San Luis Obispo County Well Drillers Bond must be issued by a surety bond provider certified by the California Department of Insurance. The parties in the agreement are the Principal (permit applicant or business), Obligee (County of San Luis Obispo), and Surety/Bond Company or Obligor (surety bond provider or insurance).
The Surety Company will guarantee the compensation (performance bond) of the Obligee should the Principal fail to deliver agreed-upon services or violate any licensing provisions. The Surety Company will receive and assess the validity of all public claims where claims may only amount to the total penal sum arranged in the bond form. The Principal shall reimburse all expenses covered by the Surety Company.
The Bond Company is secured through an indemnity agreement as the permit applicant or licensed business will ensure the full reimbursement of the claims, including legal fees and premiums. This agreement shall be made before the execution of the bond.
How much does it cost?
A Well Driller Bond in the County of San Luis Obispo costs 0.5% of the total bond amount.
How can I apply for this bond?
At Surety Bond Authority, we are dedicated to helping you get your bond the fast and easy way. Here is a step-by-step guide to help you get started.
To secure your well driller permit, you are going to have to get your bond 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!