$2,500 Caln Township Plumbers, Drain and Sewer Layers Bond

Businesses are required to file a $2,500 bond with the Caln Township (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.

Plumbers, Drain and Sewer Layers Bond

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How much does the Caln Township Plumbers, Drain and Sewer Layers bond cost?

Caln Township Plumbers, Drain and Sewer Layers bonds cost $100.

Is a Credit Check Required for Caln Township Plumbers, Drain and Sewer Layers Bonds?

Credit checks are not required for the Caln Township Plumbers, Drain and Sewer Layers bond.

Why is the Caln Township Plumbers, Drain and Sewer Layers bond required?

Businesses are required to purchase and file a $2,500 bond with the Caln Township 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 Caln Township Plumbers, Drain and Sewer Layers bond work?

Caln Township Plumbers, Drain and Sewer Layers bonds must be issued by an insurance carrier admitted by the PA Department of Insurance. The insurance company issuing any surety bond, such as the Caln Township Plumbers, Drain and Sewer Layers 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 Caln Township 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.