Outdoor Advertising Bonds Explained
In several states, outdoor advertisers are required to post this surety bond as part of the process of obtaining a license or a permit. Other names for this bond include sign license bond, sign permit bond and sign contractor bond.
The exact requirements differ somewhat from state to state, but their overall purpose is the same: to ensure that outdoor advertising companies adhere to state regulations pertaining to the installation, maintenance, and removal of advertising signs. Unlawfully erecting or removing a sign, or breaking the regulations in other ways, can lead to a claim against the advertising company.
To learn more about the cost of getting bonded and the application process, continue reading the questions below. For any additional information or assistance, you can always call us at (877)-514-5146.
Questions about Outdoor Advertising Bond
Where are outdoor advertising bonds required?
Currently, these types of bonds are often required in Delaware, Texas, Mississippi, Oregon, Minnesota as well as locally by many other states and municipalities.
Regardless of your location or type of bond, we can help you get bonded. Read on for a breakdown of costs.
How much do outdoor advertising bonds cost?
To calculate your cost of getting bonded, you need to know your bond’s penal sum first. This amount is your maximum liability under the bond agreement.
Out of the total amount, you pay a bond premium, usually annually or biannually. Your bond premium will be determined depending on your credit score– though for some bonds the bonding company may also consider your credit report and financial statements.
The table below contains information on estimated premiums for some states based on your credit score.
|State and Bond Name||Surety Bond Amount||Above 700||Between 650-699||Between 600-649||Below 599|
|Mississippi Bond For Outdoor Advertising Business||$1,000||$100||$100||$100||$100|
|Delaware Outdoor Advertising Bond||$5,000||$100||$100-$125||$125-$250||$250-$500|
|Texas Outdoor Advertisers Bond (1 county only)||$2,500||$100||$100||$100-$125||$125-$250|
|Texas Outdoor Advertisers Bond (4+ counties)||$10,000||$100||$100-$250||$100-$250||$500-$1,000|
Remember that these amounts are just estimates. The actual underwriting process may involve additional factors that influence your premium. Learn more on our What Does a Surety Bond Cost? page.
Can I get bonded if my credit score is low?
Your credit score is very important to bonding companies because it’s their way of assessing the risk associated with each bond, similarly to how a bank assesses the risk associated with each loan.
That doesn’t mean that bad credit applicants cannot get bonded. In fact, they almost always can. Usually their premiums will be slightly higher than those for applicants with a good credit score and no credit report issues.
Still, 99% of applicants successfully get bonded without having to post collateral or find a co-signer. You can learn more on our page dedicated to bad credit surety bonds.
How do I apply for my bond?
Our online application is one of the fastest and easiest you’ll find. All you need is a few minutes to complete our application, where you provide some basic information about your business. In the next step, one of our surety experts will contact you with a free bond quote.
Under normal circumstance our turnaround is quick; your bond will be ready within two business days!
What do I need to know about bond claims?
Outdoor advertising bonds act as protection to the public and the state, in case an advertiser fails to comply with applicable regulations on the erection, maintenance, and removal of billboards.
To ensure that you stay out of claims, you must read and understand state and local codes. If you are notified of a claim, the relevant local authority will give you a deadline within which you must pay the claim. If you fail to do so, the surety must step in and provide the compensation. Since you need to sign an indemnity agreement with the surety, you will still need to pay it back for the compensation it extended.