$5,000 Village of Shorewood Damage to Public Improvement Bond

Businesses are required to file a $5,000 bond with the Village of Shorewood (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.

Damage to Public Improvement Bond

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How much does the Village of Shorewood Damage to Public Improvement bond cost?

Village of Shorewood Damage to Public Improvement bonds cost $100.

Is a Credit Check Required for Village of Shorewood Damage to Public Improvement Bonds?

Credit checks are not required for the Village of Shorewood Damage to Public Improvement bond.

Why is the Village of Shorewood Damage to Public Improvement bond required?

Businesses are required to purchase and file a $5,000 bond with the Village of Shorewood 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 Village of Shorewood Damage to Public Improvement bond work?

Village of Shorewood Damage to Public Improvement bonds must be issued by an insurance carrier admitted by the IL Department of Insurance. The insurance company issuing any surety bond, such as the Village of Shorewood Damage to Public Improvement 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 Village of Shorewood 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.