Street Obstruction Bond

Street Obstruction Bond


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Summary

A Street Obstruction Bond is like a special promise that some businesses have to make to the city or town. If a business wants to block a street or sidewalk for their work, they have to make this promise. The promise says that the business will take good care of the street or sidewalk and fix any damage they cause. If the business breaks the promise, the city or town can ask for their money back from the bond. This bond helps make sure that streets and sidewalks stay safe and in good condition.

What is a Street Obstruction Bond?

A Street Obstruction Bond is a type of surety bond that is required by many cities and towns for businesses that want to obstruct or occupy a public street or sidewalk for their operations. The bond serves as a guarantee to the city or town that the business will properly maintain and repair the street or sidewalk and that the city or town will be reimbursed for any costs incurred as a result of the business's use of the street or sidewalk.

The requirement for a Street Obstruction Bond varies from city to city, but is typically imposed to protect the city or town from the costs associated with repairing any damage to the street or sidewalk caused by the business's operations. The bond amount typically varies depending on the size and type of business and the extent of the obstruction or occupation of the street or sidewalk.

The purpose of a Street Obstruction Bond is to provide the city or town with a means of recovery in the event that the business fails to properly maintain and repair the street or sidewalk or fails to remove its obstructions in a timely manner. If the city or town incurs any costs as a result of the business's use of the street or sidewalk, it may make a claim against the bond. The surety company that issued the bond will then investigate the claim and, if deemed valid, will pay the city or town up to the full amount of the bond.

How do I obtain one?

In order to obtain a Street Obstruction Bond, a business must first apply for the bond through a licensed surety company. The application process typically involves submitting a completed application form, along with any required supporting documentation, to the surety company. Once the application has been reviewed and approved, the business must then purchase the bond by paying a premium, which is typically a small percentage of the total bond amount.

The cost of a Street Obstruction Bond is determined based on the financial stability and creditworthiness of the business. In general, the better the credit and financial standing of the business, the lower the cost of the bond.

Once the bond has been purchased, it is valid for a specified period of time, typically one year. At the end of this period, the bond must be renewed in order to remain in effect. If the business fails to properly maintain and repair the street or sidewalk or fails to remove its obstructions in a timely manner during the term of the bond, the city or town may make a claim against the bond and the surety company will investigate the claim and, if deemed valid, will pay the city or town up to the full amount of the bond.

It is important to note that a Street Obstruction Bond is not insurance for the business. Rather, it is a guarantee to the city or town that the business will properly maintain and repair the street or sidewalk and that the city or town will be reimbursed for any costs incurred as a result of the business's use of the street or sidewalk. If the city or town makes a claim against the bond, the business will be responsible for repaying the surety company for any damages paid out to the city or town, up to the full amount of the bond.

In conclusion, a Street Obstruction Bond is a necessary requirement for many businesses that want to obstruct or occupy a public street or sidewalk for their operations. This type of bond serves as a guarantee to the city or town that the business will properly maintain and repair the street or sidewalk and that the city or town will be reimbursed for any costs incurred as a result of the business's use of the street or sidewalk. If your business needs to obstruct or occupy a public street or sidewalk for its operations, it is important to understand the requirements for a Street Obstruction Bond in your city or town and to work with a licensed surety company to obtain.

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