Many Utility Companies require Utility bonds for a deposit on a new or expanding account.
A Utility Bond is provided by the surety company for a business account in lieu of your posting cash directly with the utility company.
Subject to your financial strength and credit the surety is able to provide the utility guarantee with little or no collateral. Even in the cases where full collateral is required, the surety is protecting your deposit funds as a third party. If a claim is made, the surety gives you the opportunity to resolve it with the utility company and preserve you deposit and credit
Utility Deposit Bonds are surety bonds required by Utility Companies. Each has their own specific surety bond form; the principal (Applicant) is required to provide the required surety bond form.
In most cases the Utility Company will not turn your utilities on until you obtain the Bond. The Utility Deposit Bond guarantees that principal will pay utility bills to the Utility Company in a timely manor.
Many surety companies shy away from writing financial guarantee bonds due to their incurred losses. Not so with South Coast Surety.
Using our own In-House Underwriting Authority we write Utility Deposit Surety Bonds for a wide spectrum of credit profiles. We have the lowest rates in the country for those with solid credit and good solutions for those with credit challenges. Regardless of your credit situation South Coast Surety has the answer
While many other surety bonds protect the consumer, the utility deposit bond protects the utility company by ensuring it receives payment. It is a financial guarantee product.