What Is a Pest Control Bond?
A pest control bond is required of businesses who conduct pest control and use pesticides. The goal of the bond is to ensure that operators will respect the pesticide use rules. This means the bond ensures your pest control company’s compliance with all federal, state, and local laws.
Pest control bonds function like all other types of surety bonds. The bond constitutes a contract between three entities. The principal is your pest control company, and the state authority that asks you to get bonded is the obligee. The surety is the third party that provides the bond.
Questions about Pest Control Bond
Who needs to obtain a pest control bond?
Pest control operators need to register or get licensed with their state authorities. In a number of states, the pest control bond is one of the main requirements during this process. It guarantees that businesses using pesticides will comply with the codes set in their respective location, including quantity of chemicals and modes of usage.
Some states that require a pest control bond include California, Arkansas, Tennessee and Alabama. Before obtaining a pest control operator license, make sure to check with relevant authorities whether you need to get bonded.
Alabama pest control bond
The Alabama Department of Agriculture’s Pesticide Management Division requires pest control operators to obtain a $2,500 bond. It protects the citizens in the state from misuse, and guarantees operators’ compliance with the relevant laws set in the Code of Alabama.
Arkansas pest control bond
The Arkansas State Plant Board licenses pest applicators in the state. To get licensed, they need to post a $50,000 bond. Along with being a public safety measure, the bond ensures operators will follow the Arkansas Pesticide Control Act. You can find the Arkansas pest control bond form here.
California pest control bond
In California, the Department of Consumer Affairs’ Structural Pest Control Board regulates pest operators. They need to obtain a $12,500 bond to operate legally. This guarantees their compliance with the California Business and Professions Code. The California pest control bond can be found here.
Tennessee pest control bond
The Tennessee Department of Agriculture requires a pest control bond from pest applicators to ensure they will follow the Tennessee Application of Pesticides Act. Operators working with bird control, general pest, fumigation, and rodent control or wood destroying organisms need to obtain a $50,000 bond for the first three years that they hold a license. The Tennessee pest control bond form is available online.
After that period, they need only a $10,000 bond. For operators working with agricultural, aquatic pest control, soil fumigation, forest pest control, horticultural, pest control consultant, public health mosquito control, weedcontrol, and wood preservatives, the bond requirement is set at $10,000.
How much does a pest control bond cost?
The surety bond price that you will have to cover to obtain your bond depends on the bond amount required from you. It’s set by the state authorities that provide the licensing. Bond amounts and prices for some states are available in the table below.
While the bond amount may be considerable, the bond premium is only a fraction of it. If you qualify for the standard bonding market, this can mean 1%-5% of the bond amount. If you need to post a $10,000 bond, you can expect to pay between $100-$500 for your pest control bond.
When you apply for the bond, the surety examines your personal and business finances. It considers your personal credit score, business financials, and assets and liquidity. If your financial situation is sound, you can expect a lower bond premium.
Our surety bond cost page is an excellent resource that can help you understand in detail how your bond price is determined.
|Bond Type||Surety Bond Amount||Credit Sore|
|Above 700||Between 650-699||Between 600-649||Below 599|
|Alabama pest control bond||$2,500||$100||$100||$100-$125||$125-$250|
|California pest control bond||$12,500||$100-$187.5||$125-$312.5||$312.5-$625||$625-$1,250|
|Arkansas pest control bond||$50,000||$250-$625||$375-$750||$1,000-$2,500||$2,500-$5,000|
|Tennessee (Bird control, fumigation, general pest and rodent control or wood destroying organisms)||$50,000 (for the first three years of license)||$250-$625||$375-$750||$1,000-$2,500||$2,500-$5,000|
|Tennessee (Bird control, fumigation, general pest and rodent control or wood destroying organisms)||$10,000 (after the first three years)||$250-$625||$375-$750||$1,000-$2,500||$2,500-$5,000|
|Tennessee (Agricultural, aquatic pest control, soil fumigation, forest pest control, horticultural, pest control consultant, public health mosquito control, weed control, wood preservatives)||$10,000||$100-$150||$100-$250||$250-$500||$500-$1,000|
Can I get bonded with bad credit?
Lance Surety Bonds runs its Bad Credit Surety Bonds program to assist pest control operators with low credit scores, tax liens, bankruptcies, or civil judgements, to get bonded and stay in business.
You can expect bad credit bonding premiums in the range of 5% and 15%. Since the risk in bonding is higher, the increased costs compensate for it. We’ll make sure to find the best bonding option for your case, since our close relationship with a number of A-rated, T-listed surety companies allows us more choice.
How do I get my pest control bond?
Ready to start your bonding? You can apply online today for a free pest control bond quote. Looking for your exact bond price? Just send your complete paperwork and application, and we’ll deliver it in no time.
Refer to our How to Get Bonded page if you need more information about the bonding process.
If you have questions, just call us at (877) 514-5146. Our bonding specialists will be happy to answer your questions.
What happens in case of a bond claim?
Your pest control bond does not work like insurance for your business. It’s required in order to safeguard the interests of the state and the general public.
If you transgress from the rules you have agreed to during the bonding and licensing, you can face a claim on the bond. This can lead to serious financial damages if the claim is proven. The maximum penal sum of the bond can be used to compensate affected parties.
Your surety will pay the reimbursement at first, as the bond stipulates. However, you are liable to fully repay the costs. That’s why avoiding claims is the wisest course of action for your business.