WA Scrap Metal Business Bond

This bond may be referred to as a Washington Scrap Metal Processor Surety Bond, or a Washington Scrap Metal Recycler Surety bond.

What is a surety bond, and why do I need one for my Washington Scrap Metal Processor or Recycler License?

A surety bond is a three-way agreement between a Principal (The individual or business applying for a Scrap Metal Processor or Recycler License in Washington), an Obligee (Washington State Department of Licensing), and a surety company (the company backing the bond). A surety bond is not insurance for the Principal; instead, it protects the obligee from any financial obligations in the event that the Principal violates the rules or regulations specified for their license.

If you are applying for or renewing your Washington Scrap Metal Processor or Scrap Metal Recycler license, you are required to file this bond before your license will be issued. This bond is a promise that you understand and agree to comply with the regulations of your licensure. The laws, regulations, and guidelines for this license and bond are specified in the Revised Code of Washington, Chapter 322, Section 15.

This bond is covered for $10,000 each year. The cost of this bond are as follows:

  • 1 year – $100
  • 2 years – $175
  • 3 years – $250

You are required to hold this bond for the entire time you have a license.

In the event that there is a claim filed against your bond, your surety will pay out the initial damages, at which point you will be required to repay your surety the full amount. Additionally, your surety may revoke your bond as a result of the claim. If your bond is revoked, your license will be considered invalid until you file a new bond. Any claim filed against your bond acts as a mark against your “credit,” and will affect your ability to apply for any future bonds. Be sure to understand the regulations pertaining to your bond and licensure to avoid any of these issues.

This bond ensures the licensed Scrap Metal Processor or Recycler will comply with all the requirements, obligations, and regulations of RCW Chapter 322. This bond protects the public from any damages caused by the misconduct, negligence, fraud, or any violations by the licensed Scrap Metal Processor or Recycler.by
Per RCW Chapter 322, Section 15, before receiving your Scrap Metal Processor/Recycler license, you must file this $10,000 bond with the Washington State Department of Licensing.
The cost of this bond are as follows:

1 year - $100
2 years - $175
3 years - $250
To apply for your Washington Scrap Metal Processor or Recycler Surety Bond, complete and submit the application below. You may also download a .pdf application, and email it to apps@www.southcoastsurety.com, or fax it to (949)361-9926. If you choose to email or fax your application, please download and complete a payment form and attach it to your documents.
Your bond will be issued within 1-3 days after you submit a completed application and payment.