Who Is Required To Have A Brewers Surety Bond?
Brewer’s Surety Bonds, also known as an Alcohol Tax Bonds, are required for professionals who sell, manufacture or distribute beer in the United States. These bonds are filed and maintained with the Alcohol and Tobacco Tax and Trade Bureau (TTB) and is a critical piece of the permitting process for your business.
What Is A Brewers Bond?
The purpose of these financial guarantee surety bonds is to provide the government with a guarantee that excise taxes will be paid and assurance that the principal (brewer) will comply with all federal laws and regulations governing brewers. If the principal fails to pay their taxes or conduct business in a lawful manner, the harmed party can file a claim with the surety company. If the claim is valid, the surety will pay up to the penal sum of the bond to resolve the claim. The principal is then responsible for reimbursing the surety for all monies paid out, including any attorney fees incurred by the surety in defense of the claim.
Is There A Difference Between A Brewer’s Surety Bond And A TTB Surety Bond?
A Brewer’s Surety Bond is specific to manufacturers, sellers and distributors of beer products. A TTB Surety Bond is a generic term used to describe all alcohol tax bonds that are required by the Alcohol and Tobacco Tax and Trade Bureau.
How Much Are Brewers Surety Bonds Written for?
The bond amount varies and is based on how many barrels of beer is produced per quarter and the federal tax obligation on that beer. The determined quarterly tax obligation is the amount needed on the bond. If a brewery anticipates an increase in its quarterly production and tax obligations are going up in a quarter, they need to strengthen their bond. The first bond a brewer files is an original. A strengthening bond increases the penalty amount of the bond that is on file and a superseding bond replaces the bond that is on file. Brewer’s Surety Bonds have a term of four years and are renewed by filing a Brewer’s Bond Continuation Certificate with the TTB.
It is recommended that you consult the TTB for specific bond amounts prior to bonding.
How Much Do Brewers Bonds Cost?
Pricing for Brewer’s Surety Bonds will vary, and your premium for the bond will be based on a number of factors including:
- Amount of the bond
- Personal credit of the applicant
Highly qualified individuals can expect to pay 1%-3% of the bond amount. This means qualified applicants could pay as little as $500 annually for a $50,000 surety bond. To find out how much your Brewer’s Bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I Get A Brewers Surety Bond With Bad Credit?
Pacific Surety offers a wide-range of approvals, regardless of credit, for Brewer’s Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants, regardless of how bad their credit is, and our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.
How To Get A Brewer’s Surety Bond?
The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7873 and one of our Underwriters will assist you in applying for your bond.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.