Many utility companies require a deposit from their customer to establish service. A Utility Deposit Surety Bond is used to replace the cash or irrevocoble letter or credit deposit required by a utility company. The Utility Deposit Surety Bond allows the customer to take back their deposit currently held by the utility company and replace it with a surety bond. This method of financial assurance lets the customer put that cash to use as opposed to it being held captive by a utility company.
What is the current market for a Utility Deposit Surety Bond?
Utility Deposit Surety Bonds are selectively written by most surety bond markets. The bond amount for the Utility Deposit Surety Bond varies depending on the deposit amount required by the respective utility company. Terms of approval and premium are largely determined by the financial condition of the customer's corporate and/or personal net worth and experience.