California Third-Party Logistics Provider Bond ($90,000)
Know why this surety bond matters to your business!
What is a California Third-Party Logistics Provider Bond ($90,000)?
The purpose of this surety bond is to ensure that the third-party logistics provider will pay any administrative fines imposed by the California State Board of Pharmacy.
This bond is required of…
- New third-party logistics provider license applicants
- Licensees with an annual gross receipts of $10,000,000 or more.
If you own multiple licensed third-party logistics provider sites, this bond will cover all sites. This surety bond must be payable to the Pharmacy Board Contingent Fund.
A licensed manufacturer who only distributes drugs of its own manufacture are exempt from this surety bond requirement. However, the license manufacturer must have an approved new drug manufacturing application on file with the FDA to be included in the exemption. The said manufacturer must submit a list of manufactured drugs (plus their respective NDC numbers) along with a statement certifying that the manufacturer only distributes its own products to the Board.
This bond is in pursuance of Division 2, Chapter 9 of the California Business and Professions Code.
How much does a California Third-Party Logistics Provider Bond ($90,000) cost?
The bond premium will depend on the license applicant or licensee’s credit score.
The bond premium will start at 1% of the bond amount for those who have excellent credit scores.
The bond amount is $90,000.
How can I get a California Third-Party Logistics Provider Bond ($90,000)?
The first step is to apply for this bond, which you can easily do so HERE!
Once we’ve received the application, the next step would be the prequalification or underwriting process.
An underwriter will then evaluate the following:
- Your financial strength
- Your job/business performance history
- Your credit score
Once the prequalification process is fulfilled, you will be asked to sign an indemnity agreement. Once signed, we will execute the bond and send it to you!
Our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We’ll make sure that you understand all the conditions before you apply.
How does a California Third-Party Logistics Provider Bond ($90,000) work?
A surety bond is a three-party agreement.
Principal – Third-Party Logistics Provider license applicant or licensee
Obligee – the State of California
Surety – the Surety bond provider
This bond is for the protection of the Obligee in case the Principal violates any of his or her contractual obligations that are required by the California Business and Professions Code. If the Principal fails to do any of the bonded obligations required by the relevant laws, rules, and regulations, the Obligee can file a bond claim. The Surety will first investigate if the claim is valid before paying the Obligee. If it, the Surety will settle the claim. The Principal must then reimburse the Surety for the payments made.