Oregon Disseminator Contract Bond - $25,000
The State of Oregon requires businesses to apply for a $25,000 contract bond in order to secure their permits and activate their licenses. These requirements are needed to ensure the compensation of the public should accredited businesses cause any licensing infractions, such as damages to public properties or accidents, during their business operations.
What is a Contract Bond?
A contract bond is otherwise known as a performance bond. It is specifically drafted to guarantee the faithful performance of provisions outlined in the contract; that all agreed upon conditions are enforced and satisfied. Should any provision of the contract be violated, claims may be filed but will be properly assessed by the surety provider.
What is the Oregon Disseminator Contract Bond?
Prior securing the business license to operate commercial driving schools, the State of Oregon requires businesses to secure a Disseminator Contract Bond in the amount of $25,000. The bond, in this case, is a guarantee that businesses will abide by the laws imposed by the State of Oregon and that the public will be compensated in the case of licensing infractions such as public property damages or accidents.
How does it work?
The Oregon Disseminator Contract Bond must be filed with the Oregon Department of Transportation and must be issued by a surety bond provider certified by the Oregon Department of Insurance. The parties in the agreement are the Principal (applicant), Obligee (Oregon State Dept. of Transportation), and Surety/Bond Company or Obligor (surety bond provider or insurance).
The Obligor will guarantee the compensation (performance bond) of the Obligee should the Principal fail to meet their standards or violate other licensing provisions. The Obligor will assess the validity of claims, where claims may only amount to the total penal sum agreed upon in the bond form. The Principal shall reimburse all expenses covered by the Obligor.
The Obligor is secured through an indemnity agreement as the licensed business is mandated by law for the full reimbursement of the claims, including legal fees and premiums. This agreement shall be made before the execution of the bond and shall ascertain the businesses responsibility over their dealings.
How much does it cost?
While the total bond amount is set at $25,000, the Oregon Disseminator Contract Bond itself is normally between $500 and $1,875, depending on the employer’s credit score, industry experience, business history, and the surety provider’s background.
The premium rate may start with 2% to 7.5%, depeding on your standing during assessment. Generally, the better your credit score, the better your bond cost and premium rate will be.
Want to know your standing? Get your free surety bond quote today!
How can I apply for this bond?
At Surety Bond Authority, we are committed to help you get your bond the fast and easy way. Follow our step-by-step procedure to help you get started.
If you want to secure your bond early, make sure to transact with a reputable surety carrier. You can APPLY HERE if you are ready to file for your bond and rest assured a qualified surety bond agent will guide you through the process of application until the issuance of your bond.
For the assessment, our underwriter will require the following information:
- Nature of your business
- Credit Score
- Financial strength
For a speedy processing of your bond application, make sure that you have collected and provided accurate information upon submission.
Once the assessment is done, we will promptly issue your bond and send it your way. Contact us today and get your bond issued in no time.