Limerick Township Plumbing Bond

Businesses are required to file a bond with the Limerick 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.

Plumbing Bond

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How much does the Limerick Township Plumbing bond cost?

Limerick Township Plumbing bonds cost 0.5% of the bond amount.

Is a Credit Check Required for Limerick Township Plumbing Bonds?

Credit checks are not required for the Limerick Township Plumbing bond.

Why is the Limerick Township Plumbing bond required?

Businesses are required to purchase and file a bond with the Limerick 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 Limerick Township Plumbing bond work?

Limerick Township Plumbing 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 Limerick Township Plumbing 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 Limerick 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.