What Is a Household Goods Carrier Bond?
Intrastate motor carriers and brokers in some states are required to post a household goods carrier bond prior to transporting such goods within their territories. It is a type of license bond that guarantees your legal compliance.
In case you transgress from your obligations as a carrier under the law, the household goods carrier bond can be used to provide a compensation to harmed parties. They can seek a reimbursement up to the penal sum of your bond.
Just like other surety bonds, this bond functions like a contract between three entities. Your transportation business is the principal. The obligee is the state body that imposes the requirement. The surety is the bond provider.
Questions about Household Goods Carrier Bond
In which states do I need to post a surety bond to get a household goods carrier license?
Carriers who want to transport household goods on the territory of Virginia need to provide a $50,000 surety bond. You should use the official bond form to submit it to the state Department of Motor Vehicles.
In Pennsylvania, brokers of household goods have to post a $10,000 surety bond. It should be presented to the state Public Utility Commission.
Louisiana motor carriers of household goods are required to obtain a $5,000 surety bond in order to operate in the state. It should be filed with the state Public Utility Commission.
What are the costs of getting bonded?
The bond amount that you have to obtain is set by the licensing authorities in your state. However, you don’t have to cover the whole amount to obtain the bond. Instead, you only need to pay a small percentage of it. This is called the bond premium. The usual rates are between 1% and 5% of the required amount if your finances are stable.
What are the most essential factors that impact your surety bond cost? Your surety needs to look at your personal credit score, business financials, and any assets and liquidity that you include in your application. On the basis of this assessment, it can judge how risky it is to provide you with a surety bond. The more solid your finances are, the smaller your bond premium is likely to be.
|Surety bond name||Surety bond amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Virginia Household Goods Carrier Bond||$50,000||$375-$750||$500-$1,250||$1,250-$2,500||$2,500-$5,000|
|Pennsylvania Household Goods Carrier Bond||$10,000||$100-$150||$100-$250||$250-$500||$500-$1,000|
|Louisiana Household Goods Carrier Bond||$5,000||$100||$100-$125||$125-$250||$250-$500|
Is it possible to get this bond with bad credit?
Yes, you can obtain the household goods carrier bond that you need with us even with finances that are far from perfect. Lance Surety Bonds has created its Bad Credit Surety Bonds program for applicants with low credit scores, tax liens, bankruptcies, and civil judgements.
The typical bond rates for this program are between 5% and 10%. This is needed to compensate for the higher bonding risk. As we work with a number of A-rated, T-listed surety companies, we have the possibility to offer you a top bond price that matches your circumstances.
What is the procedure for obtaining a household goods carrier bond?
Interested in learning more details about the bonding process? You can find all the information that you might need in our extensive How to Get Bonded page.
Need assistance? Our bonding experts are here to help. Just contact us at (877) 514-5146.