What is a Wisconsin Public Warehouse Keeper Bond?
The Wisconsin Department of Agriculture, Trade and Consumer Protection mandates a continuous surety bond for public warehouse keepers before being licensed to operate in the state.
The Public Warehouse Keeper Bond is a type of commercial surety bond that guarantees faithful performance of all duties and obligations of a public warehouse keeper.
The bond provides assures that any financial losses will be covered if the public warehouse keeper fails to meet his or her obligations, such as:
- keeping goods left for storage
- tracking and monitoring transactions accurately
- returning goods and other merchandise by the terms of a bailment contract
In Wisconsin, a public warehouse keeper means an operator of a warehouse, including a cold-storage warehouse, for the storage of property as bailee for hire.
What are the bond conditions?
- The bond must be issued by a Surety Company licensed to do business in the State of Wisconsin.
- The Principal (public warehouse keeper) has applied for, or renewed a license, under Stats. S. 99.02 and shall comply with all applicable laws related to being a public warehouse keeper.
- If the Principal has observed all laws and statutes relating to conducting a public warehouse, the obligation will be null and void; otherwise, it will remain in full force and effect during the entire time the Principal holds the license.
- The bond may be terminated by a Surety by giving at least 30 days’ written notice to the Department.
What is the bond amount?
Class 1 public warehouse: $10,000
(less than 10,000 square feet of floor space)
Class 2 public warehouse: $20,000
(10,000 square feet or over but less than 50,000)
Class 3 public warehouse: $30,000
(50,000 square feet or over but less than 100,000)
Class 4 public warehouse: $40,000
(100,000 square feet or over but less than 150,000)
Class 5 public warehouse: $50,000
(150,000 square feet or over)
The cost of the bond is a percentage (between 1% and 5%) of the bond amount. The cost will depend on your financial standing, credit score, and personal/business experience as evaluated by a Surety Underwriter.
How do I obtain a Public Warehouse Keeper Bond?
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
- Your copy of the BOND FORM which can be obtained from the State Department of Agriculture.
Once the prequalification process is fulfilled, we will execute the bond and send it to you!
Call us now at 800-333-7800!