What Is The Purpose Of Medical Marijuana Surety Bonds?
Depending on the specific state and its current marijuana legislation, these license and permit surety bonds can range in type and scope. Many ensure that all applicable taxes and fees associated with the operation are met in a satisfactory manner, while others can address specific matters such as the cleanup of the grow site in the event the business has closed. Medical Marijuana Surety Bonds also ensure that the associated growers and retailers adhere to all applicable laws and regulations.
These bonds also provide compensation to anyone who suffers damages due to the misconduct committed by the licensed cannabis business (principal). If a harmed party files a claim against the bond and it is found to be valid, the surety company will pay out up to the penal sum of the bond to resolve the claim. Any monies paid out by the surety, including attorney’s fees, must be reimbursed by the principal.
Who Needs This Bond?
Medical Marijuana Bonds, also known as Cannabis Bonds, are required by the governments of states which have legalized the cultivation and use of medicinal cannabis. One must obtain this surety bond before being able to legally cultivate, dispense or dispose of marijuana for medical or recreational purposes.
How Much Are Medical Marijuana Bonds Written For?
The penalty amount for Medical Marijuana Bonds will vary by type of bond and which state is requiring it. Pacific Surety proudly offers Medical Marijuana Surety Bonds in the following states:
- Alaska – City of Anchorage
- Nevada – City of Las Vegas
Please contact your local authority for information about License Surety Bond requirements in your state for medical marijuana.
How Much Do Medical Marijuana Bonds Cost?
Pricing for Medical Marijuana Surety Bonds will differ from applicant to applicant. Your premium will be based on a number of different factors, including the following:
- The state requiring the bond
- Type/Scope of the bond
- Amount of the bond
- Personal credit of the applicant
Individuals with good credit can expect to pay 1%-5% of the bond amount. This means qualified applicants could pay as little as $100 annually for a $10,000 Medical Marijuana Surety Bond. To find out how much your Medical Marijuana Bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I Get This Surety Bond With Bad Credit?
Pacific Surety offers a wide-range of approvals, regardless of credit, for Medical Marijuana 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. Applicants with substandard credit can expect to pay 5%-15% 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.
Can The Premium For These Bonds Be financed?
Yes! Pacific Surety has an industry-leading premium finance program that gives our clients the ability to purchase a bond when the upfront costs might be prohibitive to them. Applicants who choose this option will pay a percentage of their premium as a down payment, and the balance of the premium will be paid in 4 monthly installments. Please contact our staff for additional information regarding our finance program.
How Do I Get A Surety Bond Quote?
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.