A surety bond is a three-way agreement between the Principal (the permittee), the Obligee (Caltrans), and a surety company. The bond acts as a form of protection for County of Fresno in the event that the Principal fails to comply with the requirements, obligations, and regulations of their Encroachment permit. If the Principal does violate these terms, the County of Fresno and the general public free from any financial liabilities arising from any damages or injuries. As the Principal of this surety bond, you are making a promise that you both understand and agree to comply with your Encroachment Permit in its entirety, and assume any and all financial liabilities that may arise from a violation of the permit’s terms.
Before Fresno will approve your application for an Encroachment Permit, you must file this bond with the Country of Fresno. The bond amount is $6,000, but you are only required to pay a percentage of the amount, known as a premium. Learn more about your premium below.
Section 660 of the California Streets and Highway Code defines an encroachment as “any tower, pole, pole line, pipe, pipeline, fence, billboard, stand or building, or any structure, object of any kind or character not particularly mentioned in the section, or special event, which is in, under, or over any portion of the State highway rights of way. ‘Special event’ means any street festival, sidewalk sale, community-sponsored activity, or community-approved activity.” If your intended actions fall under any of the aforementioned guidelines, you are required to obtain a permit from Caltrans, as well as an Encroachment Permit Surety bond. Complete our simple application below to get your surety bond today.
In the event that there is a claim filed against your surety bond, your surety company will cover any initial payments to the damaged party, at which point you will be obligated to repay your surety company the complete amount, plus any associated fees. It is extremely important that you avoid claims against your bond – in addition to your financial liability, they will affect your future ability to apply for bonds. If you are unable to obtain a surety bond due to a history of claims, you may be unable to obtain a permit or license that requires an associated bond.
This surety bond does not require underwriting, and is therefore offered through South Coast Surety at a flat rate with no credit check. In the application, you may select a 1-, 2-, or 3- year bond. The associated costs are as follows:
- 1-year Encroachment Permit Bond – $100
- 2-year Encroachment Permit Bond – $175
- 3-year Encroachment Permit Bond – $350
The surety bond amount is $6,000 each year. The effective date selected must be on or before you expect to be issued your permit (your bond is required for permit issuance), and must be within 30 days of ordering. Upon submitting your application and payment, your bond will be issued within 1-3 days.