FOR ALL YOUR SURETY BOND NEEDS.
These surety bonds are general for all states.
In many states, motorcycle dealers are required to obtain a surety bond as part of the process of getting licensed to sell motorcycles. Thus, a motorcycle bond, or motorcycle dealer bond, is a form of license and permit bond.
License and permit bonds guarantee that the bonded individual will conduct business in accordance with all applicable state laws. This protects the public as well as the state licensing agency from financial loss resulting from the unlawful or unethical actions of the motorcycle dealer.
Anyone applying for a new or renewal license in a state that requires bonding as part of the licensing process must purchase a motorcycle dealer bond.
There are three parties to any type of surety bond: the obligee, the principal, and the surety:
Anyone who suffers a financial loss as a result of the principal’s violation of the terms can file a claim against the bond, for up to the full penal amount of the bond (the penal amount). When a claim is filed, the surety will investigate to make sure that it is valid and, if it is, will attempt to negotiate a settlement.
If no settlement is reached, the surety will typically pay the claim as an advance on behalf of the principal. However, the principal is legally responsible for all claims and must reimburse the surety.
The annual premium for a surety bond is a small percentage of the required bond amount. The surety sets the premium rate for each applicant based primarily on the individual’s credit score. Applicants with good credit typically pay between 1% and 3% of the bond amount.
Request an online quote today, or call us with any questions you have about getting a motorcycle dealer’s bond.
