Who Needs the Bond?

This bond may be required for a variety of activities in Bement, including:

1. Contractors and Builders: To secure permits for construction, renovation, or excavation projects.

2. Business Owners: Particularly those applying for licenses to operate businesses that impact public safety or property.

3. Specialized Trades: Electricians, plumbers, and HVAC professionals often need this bond to work legally in the village.

4. Event Organizers: For temporary event permits to ensure compliance with local regulations.

Check with the Bement village office to confirm if your specific activity or license requires this bond.

Why Is the Bond Required?

In my experience, Bement requires this bond for several important reasons:

1. Ensuring Compliance: The bond guarantees that license and permit holders follow all applicable village regulations and ordinances.

2. Protecting Public Interests: It safeguards the community from potential damages or financial harm caused by noncompliance.

3. Accountability: Encourages businesses and contractors to fulfill their obligations responsibly.

How Does the Bond Work?

A Bement Village License/Permit Bond is a three-party agreement involving:

• Principal: The business owner, contractor, or individual required to obtain the bond.

• Obligee: The Village of Bement, which mandates the bond.

• Surety: The bonding company that provides the bond and guarantees payment if a valid claim is made.

If the principal violates the bond terms—such as failing to complete a project or causing damages—a claim can be filed against the bond. The surety may pay the claim, but the principal is ultimately responsible for reimbursing the surety.

Steps to Obtain the Bond

Based on what I’ve seen, securing a Bement Village License/Permit Bond is straightforward when you follow these steps:

1. Verify Requirements: Confirm the bond amount and specific conditions with the Bement village office.

2. Choose a Surety Provider: Work with a reliable bonding company experienced in municipal bonds.

3. Submit an Application: Provide details about your business, including financial history and the type of bond required.

4. Pay the Premium: The premium is typically a small percentage of the bond amount and is influenced by creditworthiness and business experience.

5. Submit the Bond: Include the bond with your license or permit application to finalize the process.

Cost of the Bond

The cost of a Bement Village License/Permit Bond depends on several factors:

• Bond Amount: Determined by the village based on the type of license or permit.

• Credit Score: Higher credit scores often result in lower premiums.

• Business History: Established businesses with strong track records may qualify for better rates.

Premiums generally range from 1% to 5% of the bond amount. For example, a $10,000 bond may cost between $100 and $500 annually.

What Happens if a Claim Is Filed?

If a claim is filed against your bond—such as for violating permit conditions or causing property damage—the surety will investigate its validity.

If the claim is valid, the surety may compensate the claimant up to the bond amount. However, as the bondholder, you are legally obligated to reimburse the surety for the claim amount and any associated costs.