California Wholesaler or Nonresident Wholesaler Bond ($100,000)
Secure your wholesaler license through this surety bond!
What is a California Wholesaler or Nonresident Wholesaler Bond ($100,000)?
Every wholesaler or nonresident wholesaler who is applying for either a new wholesaler license or a wholesaler with an annual sales of more than $10,000,000 is required by law to obtain this bond.
The purpose of this bond is to ensure that the wholesaler will faithfully and honestly conform to the relevant provisions of the California Business and Professions Code as well as the rules set forth by the California Board of Pharmacy.
This bond will be used for the benefit of those who will be harmed by the non-compliance of the licensee.
The following are also required to obtain a wholesale license/permit and submit the necessary license requirements:
- Customs brokers who sell for resale or negotiate for distribution of any dangerous drug or device included in Section 4022 of the Business and Professions Code.
- Reverse distributors who arrange for the destruction of outdated or damaged dangerous drugs or devices.
This requirement is in pursuance of Sections 4162 and/or 4162.5 of the California Business and Professions Code.
How much does a California Wholesaler or Nonresident Wholesaler Bond ($100,000) cost?
This will vary per wholesale license applicant. The bond premium ranges from 1% to 5% of the bond amount, depending on the license applicant’s credit score.
The bond amount is $100,000.
You may check you bond premium by getting your FREE QUOTE HERE from us!
How can I get a California Wholesaler or Nonresident Wholesaler Bond ($100,000)?
APPLY FOR THIS BOND – We begin the bonding process with an application. You may send your application for this bond HERE!
UNDERWRITING – Once we have received your application, an underwriter will ask you to submit the following important requirements:
- Proof of your financial capability
- Your business’ history
- Your credit score
In order to avoid any delay, make sure that your requirements are complete prior to submitting them.
ISSUANCE – As soon as the underwriter has completed the necessary in-depth check, we will immediately issue the surety bond and send it to you!
How does a California Wholesaler or Nonresident Wholesaler Bond ($100,000) work?
This bond is not an insurance but rather an extension of credit provided by the Surety (surety bond provider) to the Principal (wholesaler license applicant).
The Principal and the Surety will partner in assuring the performance of the former to the Obligee (People of the State of California and the Pharmacy Board Contingent Fund).
The Principal is primarily responsible for the fulfillment of the legal obligations required. 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 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!