What are Louisiana Utility Bonds?
Get the utility service that you need through this surety bond!
Utility bonds are required by different public and private utility companies in Louisiana prior to providing a service or restoring service.
A surety bond is a standard requirement for most utility companies, but there are those that will only ask for a surety bond if the applicant has a history of delinquent accounts.
The surety bond will serve as a guarantee or a deposit in case the Principal or the person who applied for a utility service fails to promptly pay the amount due. When this happens, the utility company will file for a financial claim on the surety bond in order to prevent any financial loss that will affect the rest of its clients.
What are the Utility Bond amounts?
The bond amount may vary per applicant, as well as the utility company or provider. Before you apply for a utility bond, verify the full amount that you need with your provider.
The bond premium will depend on your credit score. If you have determined your bond amount and have an excellent credit score, you will be eligible to pay for a small percentage of the bond amount!
If you know your bond amount now, you may get your FREE SURETY BOND QUOTE HERE!
How can I get a Utility Bond?
In order to secure this type of bond, you must seek the assistance of a surety bond company.
You will be asked to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will then evaluate the following:
- Your financial strength
- Your job/business performance history
- Your credit score
Once the prequalification process is fulfilled, we will execute the bond and send it to you!
What are the bond conditions?
- The surety bond agent or company should be authorized to conduct business in the State of Louisiana
- The surety bond should be made payable to the utility provider
Principal – the utility service applicant
Obligee – the utility service company (ex. Entergy Louisiana or Cleco)
Surety – Surety Bond Authority
- The Principal is obligated to comply with the rules set forth by the utility provider including paying for the service provided on time and in full
- If the Principal commits a violation of the rules such as failure to promptly pay for the bill, the utility provider will be eligible to file a claim on the surety bond
If you need further information about this surety bond, call us at 800-333-7800!