Utah Surety Bond Types
There are many unique types of businesses in Utah that require the security of a surety bond to operate legally. The purpose of surety bonds is to protect both the company, who acts as the principal, and its customers, who are the obligees. When a principal and an obligee enter into a contract a surety is often present. A surety is a person, or company, who requires the principal to keep his or her side of the bargain, even if something unexpected happens. This way the obligee, or the customer, gets what he or she was promised. Securing a surety bond is an obvious choice for most any business.
While some business owners in Utah might think they can get away without having a surety bond they should know that the government requires many different types of business to obtain a surety bonds. The reasons for this can vary, but generally the government hopes to protect either itself or consumers against any fraudulent activities.
Utah Surety Bond Requirements
A specific type of bond required by the Utah state government is the private club bond. The Utah Department of Alcoholic Beverage Control requires any business who wants to obtain a club liquor license to secure a $10,000 surety bond. This bond binds the business to the department in case of fraudulent behaviors.
But surety bonds in Utah aren’t just about fulfilling government regulations. They’re also good to have because they increase the confidence a customer has in you and your business. Knowing a business has secured a surety bond to protect the best interest of its customers or its government is a powerful bargaining chip when entering into a contract. Customers and legal organizations will have a greater respect for you and your ethical business decisions since you have taken interest in making sure you have taken care of them.
Even though your business may not require a club liquor license you should still check with the local and Utah state government rules and regulations regarding surety bonds for the type of business you currently maintain or plan to open. If you’re unsure about surety bond requirements don’t hesitate to find a specialist who can guide you through the process. Once you know what you need you can apply for a bond online in a matter of minutes. Finding the surety bond that is right for you and your business is both easy and worthwhile.