Alabama Custom Application of Pesticides Bond

Businesses are required to file a bond with the State of Alabama Commissioner of Agriculture and Industries (the "Obligee") to activate their license. The bond protects the Obligee by transferring to a surety bond company the cost of ensuring the public is compensated for damages resulting from a licensed business breaking licensing laws.

Custom Application of Pesticides Bond

State/Jurisdiction:
Classification:

How much does the Alabama Custom Application of Pesticides bond cost?

Alabama Custom Application of Pesticides bonds typically cost between 0.8% and 5.0% of the bond amount depending on the personal credit, license history, and experience of the business owners and the surety carrier issuing the bond.

Credit Premium Rate
0.75%
1.00%
1.25%
2.00%
2.50%
3.00%
4.00%
5.00%

Is a Credit Check Required for Alabama Custom Application of Pesticides Bonds?

Surety carriers will run a credit report as part of underwriting the bond because the business ultimately must reimburse the surety bond company for any claims made on the bond.

Why is the Alabama Custom Application of Pesticides bond required?

Businesses are required to purchase and file a bond with the State of Alabama Commissioner of Agriculture and Industries to activate their license. The bond protects the Obligee by transferring to a surety bond company the cost of ensuring the public is compensated for damages resulting from the failure of a licensed business complying with the provisions of licensing laws.

How does the Alabama Custom Application of Pesticides bond work?

Alabama Custom Application of Pesticides bonds must be issued by an insurance carrier admitted by the Alabama Department of Insurance. The insurance company issuing any surety bond, such as the Alabama Custom Application of Pesticides bond, will also be referred to as the "surety company" or the "bond company". The business is referred to as the Principal, the surety bond company as the Obligor and the State of Alabama Commissioner of Agriculture and Industries as the Obligee.

The surety company provides the Obligee a guarantee (the surety bond) that the customers, vendors and employees of a licensed business will receive payment for financial damages due to a violation of licensing law up the bond amount stated on the bond form ("penal sum"). The bond company also directly receives claims from the public and determines the validity of claims. Ultimately, the licensed business owners are responsible for their actions and required by law to reimburse the surety company for any payments made under the bond or face indefinite license suspension.