Opening Streets Permit Bond

Opening Streets Permit Bond


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What is a Opening Streets Permit Bond?

An opening streets permit bond, also known as a street opening bond, is a type of surety bond that is required by some municipalities for individuals or companies who wish to perform construction or excavation work on public streets or sidewalks. The bond serves as a guarantee that the work will be completed in accordance with local regulations and that any damages caused to the public property will be repaired or compensated for.

The purpose of an opening streets permit bond is to protect the municipality and its residents from financial losses or damages caused by construction or excavation work. By requiring a bond, the municipality ensures that individuals or companies who wish to perform work on public property are financially capable of completing the work and fixing any damages that may occur.

The bond amount for an opening street permit bond is determined by the municipality and can range from a few thousand dollars to several hundred thousand dollars, depending on the scope and nature of the work being performed. The bond premium, which is a percentage of the total bond amount, is paid by the individual or company performing the work. The insurance company that issues the bond serves as the surety, and if the individual or company fails to comply with local regulations or causes damages to the public property, the municipality can make a claim against the bond. The insurance company will then investigate the claim and, if it is determined to be valid, will pay the municipality up to the full amount of the bond. The individual or company performing the work is then responsible for reimbursing the insurance company for the claim payment.

How do I receive this bond?

To obtain an opening street permit bond, the individual or company must first obtain a permit from the municipality to perform the work. Once the permit is obtained, the individual or company must complete an application for the bond and provide financial information to the insurance company. The insurance company will then evaluate the individual or company’s credit and financial history to determine if they are a good candidate for the bond. If the individual or company is approved, they must pay the bond premium and sign the bond agreement.

It is important for individuals and companies to understand that an opening street permit bond is not insurance. The bond is meant to protect the municipality and its residents from financial losses or damages caused by construction or excavation work. It does not protect the individual or company from financial losses or liability for any damages they cause. Individuals and companies should also be aware that a bond does not replace the need for liability insurance. Liability insurance provides protection for the individual or company in the event that they cause damage or injury to a third party.

In conclusion, an opening street permit bond is an important requirement for individuals or companies who wish to perform construction or excavation work on public streets or sidewalks. This bond provides assurance to the municipality that the work will be completed in accordance with local regulations and that any damages caused to the public property will be repaired or compensated for. Obtaining an opening street permit bond is a simple process that can be done by obtaining a permit, completing an application, and paying a bond premium to an insurance company. Individuals and companies should be aware that a bond is not insurance and should also consider obtaining liability insurance to protect themselves from financial losses.

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