Virginia Underground Storage Tank Payment and Performance Bond

Businesses are required to file a bond with the Commonwealth of Virginia Department of Environmental Quality (DEQ) (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.

Underground Storage Tank Payment and Performance Bond

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How much does the Virginia Underground Storage Tank Payment and Performance bond cost?

Underground Storage Tank Payment and Performance bonds typically cost between 0.5% and 15% of the bond amount depending on the personal credit, license history, and experience of the business owners and the surety carrier issuing the bond.

Is a Credit Check Required for Virginia Underground Storage Tank Payment and Performance Bonds?

Credit checks are typically required for the Virginia Underground Storage Tank Payment and Performance Bond.

Why is the Virginia Underground Storage Tank Payment and Performance bond required?

Businesses are required to purchase and file a bond with the Commonwealth of Virginia Department of Environmental Quality (DEQ) 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 Virginia Underground Storage Tank Payment and Performance bond work?

Virginia Underground Storage Tank Payment and Performance bonds must be issued by an insurance carrier admitted by the Virginia Department of Insurance. The insurance company issuing any surety bond, such as the Virginia Underground Storage Tank Payment and Performance 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 Commonwealth of Virginia Department of Environmental Quality (DEQ) 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.