California Subhaulers, Sub-Subhaulers, and Lessor-Employees Bond
Know why this bond is required and how to get one fast!
What is a California Subhaulers, Sub-Subhaulers, and Lessor-Employees Bond?
The purpose of this bond is to secure payment of claims made by the subhauler, sub-subhauler, and lessor-employees.
The Public Utilities Commission of the State of California requires this bond if the bond applicant will perform the following acts below:
- Engages or intends to engage subhaulers, sub-subhaulers, and lessor-employees of highway carriers.
- Intends to become a motor vehicle for hire as a highway carrier.
- A carrier who leases equipment from a lessor-employee, or a prime or overlying carrier.
- Any carrier who renders service for a prime or overlying carrier.
This requirement is in pursuance of Sections 1074 and 3575 of the California Public Utilities Code.
How much does a California Subhaulers, Sub-Subhaulers, and Lessor-Employees Bond cost?
The bond cost will depend on the bond applicant’s credit score. Those who have excellent credit scores will be eligible to pay a low bond premium.
Bond premium typically ranges from 1% to 5% of the bond amount.
The bond amount is $15,000.
Do you want to know your bond premium right now? Get your FREE SURETY BOND QUOTE RIGHT HERE
How can I get a California Subhaulers, Sub-Subhaulers, and Lessor-Employees Bond?
We’ve made the process easier so that you can get your license and start your business faster.
Just follow these simple steps on how to get this bond below:
STEP 1: APPLY FOR THIS BOND HERE!
STEP 2: ASSESSMENT
Your application will immediately be processed once we have received it. We will contact you if we need further information or if you need to submit documents needed for the prequalification process. The following will be checked during the prequalification process:
- Your financial capability
- Your business or job performance history
- Your credit score
Our expert underwriter will carefully evaluate all three in order to attain the best credit decision possible. To avoid any delay, the information that you should submit should be organized and concise.
STEP 3: BOND ISSUANCE
Your surety bond will be issued and sent to you after the indemnity agreement is signed.
How does a California Subhaulers, Sub-Subhaulers, and Lessor-Employees Bond work?
This bond is a legally binding agreement among these parties:
Principal – bond applicant
Obligee – the State of California
Surety – surety bond provider
Through this bond, the Surety is guaranteeing that the Principal will faithfully and honestly perform his or her legal obligations. The Surety will also extend its credit to the Principal in case the Principal fails to pay the sums due to the subhauler, sub-subhauler, and lessor-employee.
If such happens, the said persons can file a claim against the bond. The claim will first be verified by the Surety before it is settled. Once the Surety has settled the claim, the Principal will reimburse the Surety for the payments made.
Ready to apply? START HERE!