$5,000 City of Burnet Electrical Bond

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

Electrical Bond

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How much does the City of Burnet Electrical bond cost?

City of Burnet Electrical bonds cost $100.

Is a Credit Check Required for City of Burnet Electrical Bonds?

Credit checks are not required for the City of Burnet Electrical bond.

Why is the City of Burnet Electrical bond required?

Businesses are required to purchase and file a $5,000 bond with the City of Burnet 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 City of Burnet Electrical bond work?

City of Burnet Electrical bonds must be issued by an insurance carrier admitted by the TX Department of Insurance. The insurance company issuing any surety bond, such as the City of Burnet Electrical 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 City of Burnet 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.