What is a waste hauler bond?
Waste hauler bonds (also known as waste tire hauler bonds) are legally binding agreements between three parties: waste haulers, the government agency responsible for regulating local waste management activity, and a surety company.
The government agency is the Obligee and establishes the obligations that the waste hauler (the Principal) must follow. The surety (also called bonding company) issues the bond guaranteeing the performance of the waste hauler.
Why do you need a waste hauler bond?
Waste hauler bonds are required in some states before being eligible to obtain a license to collect, transport, and dispose of solid waste or recyclable materials. Some states where you need a surety bond include California, Colorado, New Mexico, and Kentucky, among others. Most states handle waste hauler licensing directly while some allow local municipalities to handle licensing and regulations.
When the surety company issues the bond, they provide the government agency a guarantee that the customers and suppliers of a licensed waste hauler will receive payment for financial losses resulting from a violation of the statutes and regulations set forth by the waste hauler license.
If the waste hauler fails to meet the obligations set out by the government agency, the surety will pay out any damages up to the bond amount. The waste hauler is ultimately liable for the losses and is legally required to reimburse the surety company for any damages paid under the bond.
How much does a waste hauler bond cost?
Waste hauler surety bond costs vary depending on the total bond amount and the premium rate. The government agency sets the required bond amount and the surety company determines your premium rate, which is the percentage of the total bond amount you pay as the premium.
Premium rates for waste hauler bonds typically cost between 2% and 8% of the total bond amount. Most waste hauler bonds require credit checks. During the application process, the surety company evaluates your credit score, financial strength, and industry experience. Applicants with good credit generally receive the lowest rates, however, bad credit will not prevent you from securing a waste hauler bond. EZ Surety still offers competitive rates to individuals with low credit scores or other financial issues.
Below are the lowest premiums EZ Surety has issued for waste hauler surety bonds in popular states.
- EZ Surety has issued waste hauler bonds in the State of Kentucky for premiums as low as $200.
- EZ Surety has issued waste hauler bonds in the City of Des Moines for premiums as low as $100.
- EZ Surety has issued waste hauler bonds in Fairfax County Virginia for premiums as low as $100.