Carroll Township Shed Removal Bond

Businesses are required to file a bond with the Carroll 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.

Shed Removal Bond

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How much does the Carroll Township Shed Removal bond cost?

Carroll Township Shed Removal 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.

Is a Credit Check Required for Carroll Township Shed Removal 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 Carroll Township Shed Removal bond required?

Businesses are required to purchase and file a bond with the Carroll 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 Carroll Township Shed Removal bond work?

Carroll Township Shed Removal 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 Carroll Township Shed Removal 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 Carroll 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.