Surety Bond Education

Code Compliance Bond

A Code Compliance Bond is a type of license and permit bond that a business or individual must obtain that relates to a professional license. The bond will guarantee that the individual or business will comply with the terms of their professional license. Some examples of these types of bonds include a Right Of Way bond for a contractor or a Contractor’s License bond.


How Do You Obtain a Code Compliance Bond?

Obtaining this type of bond if typically pretty easy. It will require you to complete an application and pay the premium for the bond. Some entities will require you to obtain a bond first before they will issue you a license.

What Is The Purpose Of A Code Compliance Bond?

This type of bond is providing a guarantee to the Obligee (entity requiring the bond) that should you not comply with the terms of the license that you were granted that there is a financial guarantee in place to make whole someone that you may have harmed. However, this is not insurance though. If there is a valid claim on the bond the surety company will look to you to indemnify them.  This means that you would need to pay back the surety if they paid out a claim.

How much Does A Code Compliance Bond Cost?

The premium for this type of bond varies. It will depend both upon the size of the bond that they require and the nature of the bond requirement. But many times the premium may be as low as $100.

There are many different type of code compliance bonds that could be required. We can help you determine what the obligee will require. You may fill out our online application.  You may email Eric Schmalz or give us a call at 512-640-6444 so we can help.  It is helpful to send us a copy of the bond form that the Obligee requires.  The bond form will help us guide you in the right direction. We are here to help with all of your surety bond needs.

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