- Licensed in MD, PA, VA, OH and FL
- Electronic bond delivery when available
If a utility company asked you for a security deposit, ask whether it accepts a utility deposit bond instead. Send us the utility’s requirement and we’ll tell you what the surety needs for a quote.
A utility deposit bond is a surety bond that a utility company can accept in place of some or all of a cash security deposit. It guarantees that you will pay the utility the amounts you owe under the bond.
That is up to the utility. Whether it accepts a bond, the amount, and the form it requires depend on the utility and its tariff or rules.
Ask the utility what it accepts and for its bond form. Send it to us and we will check it before you buy.
Businesses are the usual buyers, including those with several locations or large utility usage. A bond can free up cash that would otherwise sit as a deposit.
Residential customers are less often offered this option. Check with the utility.
Many utility deposit bonds renew periodically, and the utility may have its own rules for when the bond can be released. The bond wording and the utility’s rules control.
Keep track of renewal notices, and tell us if you close an account so we can ask about the bond.
You normally pay a premium for the bond, not the full bond amount. A $50,000 deposit bond does not normally cost $50,000.
The price depends on the bond amount, your credit and financial information, and the surety company. Larger deposits can need more underwriting.
It depends on the bond amount and the surety company. Smaller bonds may involve limited underwriting, and larger ones may need credit and financial information.
If credit is an issue, tell us up front. Options can differ from one surety company to another.
Send the utility’s request or bond form. The most useful items are:
It depends. Straightforward utility deposit bonds can often be issued quickly when the form and applicant information are complete. Larger amounts, credit issues, or an unusual utility form can take longer.
If the utility gave you a deadline, tell us when you apply.
If this is not the bond you were asked for, these pages may help.
It can. Each utility sets its own deposit rules, and state regulators can set rules for utilities in their state. Do not assume a bond accepted by one utility is accepted by another.
Send us the utility’s letter or bond form. We’ll tell you what the surety needs next.
The Bond Agent | 3655A Old Court Rd, Suite 13 | Baltimore, MD 21208
