What Are Concessionaire Bonds?
These surety bonds ensure that the scheduled payments to the grantor are disbursed and processed as agreed upon, guaranteeing the grantor restitution for allowing the utilization of their premises for business needs.
If the principal (concessionaire) does not comply with the terms of the bond, a claim can be filed with the surety company for relief. 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 required to reimburse the surety for all monies paid out, including any attorney fees incurred by the surety in the defense of the claim.
Who Is Required To Have A Concessionaire Surety Bond?
Concessionaire Surety Bonds are required for individuals and businesses known as concessionaires, that operate as the seller of particular goods or services within the physical premises of another individual or business, referred to as the grantor.
Through this working relationship, the concessionaires typically owe the grantor an agreed upon fee or percentage of earnings as payment for use of their physical premises.
Which States Require Concessionaire Surety Bonds?
Pacific Surety proudly offers Concessionaire Surety Bonds in all states. The following are some of our more popular offerings:
Please contact us with specific questions regarding your bonding needs, and one of our knowledgeable underwriters will assist you.
What Is The Bond Amount For Concessionaire Surety Bonds?
Amounts for Concessionaire Surety Bonds vary and are based on the agreed upon amount of compensation between the principal (concessionaire) and the obligee (grantor). Therefore, bond amounts and requirements vary from bond to bond. Please contact us with specific questions, and our knowledgeable underwriting staff will assist you.
How Much Do Concessionaire Surety Bonds Cost?
Pricing for Concessionaire Surety Bonds varies, and your premium will be based on the following factors:
- Amount of the bond
- Term length of the bond
- Personal credit for all owners with at least a 10% ownership stake in the business
Individuals with good credit can expect to pay 1%-5% of the bond amount. Qualified applicants could pay as little as $500 annually for a $50,000 Concessionaire Surety Bond. To find out how much your bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I Get A Concessionaire Surety Bond With Bad Credit?
Pacific Surety offers a wide range of approvals, regardless of credit, for Concessionaire Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants, regardless of how bad their credit is. Our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. Applicants with substandard credit can expect to pay 5%-10% of the bond amount in premium. To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.
How Are Concessionaire Surety Bonds Purchased?
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.