What Is a Utility Bond?
A utility deposit bond is a financial guarantee ensuring a person or organization will pay for utilities on time. These surety bonds protect utility companies by ensuring they receive payment for their services.
How to Buy Utility Bonds
Submit an online application to buy your utility bond online from SuretyBonds.com — the nation’s top surety provider. We offer the best service, fastest delivery and most affordable prices in the industry!
How Much Does a Utility Bond Cost?
The cost of a utility bond can vary significantly because utility bond amounts are determined on a case-by-case basis. However, most applicants will pay 1–10% of the total bond amount. For example, a $10,000 utility bond would cost between $100 and $1000.
For more information on bond requirements and pricing in your area, select your state on the map:
What Are Utility Bond Requirements?
Utility bonds are required by specific parties before performing tasks, such as turning on utilities. While general liability insurance is required of these companies, commercial insurance usually isn't. The surety bond helps provide additional protection to supplement insurance coverage.
Most utility companies require high-volume utility customers — such as manufacturing companies, restaurants or campgrounds — to be bonded before turning on utility services.
How Do Utility Bonds Work?
A utility surety bond ensures that utility customers will pay their bills in full and on time. If they fail to do so, the utility company can file a claim to receive the payment. The surety provider will pay the claim amount and the bondholder must reimburse the surety.
