The September 30 renewal date for some surety bonds is quickly approaching! If you have one of the bonds on the following list, you’ll need to renew before that date in order to continue conducting business:
Alabama auto dealer surety bond
Alabama fundraising surety bond
Florida recreational vehicle dealer surety bond
Illinois plumbing contractor license surety bond
Most surety specialists will contact you before your renewal date to ensure you don’t miss it. However, it’s best to keep track of these dates and renew on time to avoid a lapse in surety bond coverage.
I haven’t used my bond. Do I still need it?
Short answer, yes—and it’s great that you haven’t used your bond! That means you’ve obeyed your state’s laws, no one has suffered monetary damages as a result of poor business practices and you’re not violating the terms of the surety bond. Not to mention, your license probably requires you to have a surety bond for the entirety of the licensing period. Having a surety bond or bonds for long periods of time with no claims can also have a positive effect on your premium—this shows the underwriter that you’re responsible and can result in a lower rate.
What happens if I don’t renew my bond on time?
Consequences for not renewing your surety bond vary by state, but usually your license will be suspended until you renew your bond. If you wait too long, your license can be revoked—meaning you have to restart the licensing process, fees and all. Continuing to conduct business without a surety bond can result in fines and even misdemeanor charges.