What is a California Yacht and Ship Broker Bond?
Operating a yacht and ship broker company in California requires licensing from the California Division of Boating and Waterways. To receive that license, businesses must first post a California yacht and ship broker bond.
Who Needs a California Yacht and Ship Broker Bond?
As a coastal state, there are many yacht and shipbrokers that are responsible for buying, selling, and leasing these watercraft. Prospective yacht and shipbrokers are required to purchase a yacht and ship broker bond of $15,000 before they can become licensed to conduct business.
Why Do I Need a California Yacht and Ship Broker Bond?
California yacht and shipbrokers must comply with the Harbors and Navigation Code (Article 2, Chapter 5, Division 3) and all other laws. Additionally, this surety bond helps to ensure that these companies act ethically and without misleading or fraudulent business practices.
If the principal violates these laws or the terms of the surety agreement, any harmed parties can make a claim against the yacht and ship broker bond. Once finalized, the principal is responsible for reimbursing the surety for any damages paid or associated legal costs.
How Much Does a California Yacht and Ship Broker Bond Cost?
The California Division of Boating and Waterways requires a $15,000 surety bond for the licensing of yacht and shipbrokers. These bonds are subject to underwriting, and the cost will vary based upon the credit rating of the principal.
Get Started Today!
To operate as a yacht and shipbroker, you must first purchase a California yacht and ship broker bond. Don’t delay your application.