Who needs Sign Permit Bonds?

This bond is for contractors who fabricate or install signs and, in some cases, related wiring attached to posts or poles. Some states and local licensing agencies require it as part of getting a sign permit or qualifying for a sign contractor license. If your licensing paperwork says you need a sign contractor bond or sign permit bond, it’s referring to this requirement.

The bond is meant to ensure you follow the rules set by the agency that regulates sign contractors. If a contractor violates those licensing requirements and causes a financial loss, the bond can be used to cover damages up to the bond’s limit. If a claim is paid, the contractor is responsible for paying the surety company back.

How much do Sign Permit Bonds cost?

Your cost depends on the bond amount required by the licensing agency and the rate you qualify for. The rate is a percentage of the bond amount you pay as the premium.

Sign contractor bond rates are commonly in the 1% to 5% range, but the exact rate depends on the surety’s review of your application. Pricing is typically based on factors like credit, overall financial strength, and industry experience. Some applicants may also see minimum premiums depending on the state and underwriting guidelines.

How do I get a Sign Permit Bond?

Start by confirming the bond requirement from your licensing paperwork, including the bond name and any filing instructions. The licensing agency sets the required bond amount and the bond conditions you must meet.

During the application process, the surety company reviews your information to determine your rate. This review may include a credit check, along with consideration of your financial strength and experience in the industry. Once approved, the bond is issued so you can file it with the agency as required for your permit or license.

Can I get a Sign Permit Bond with bad credit?

Yes, applicants with poor credit may still qualify. While good credit often helps you get the lowest rates, bad credit does not automatically prevent you from getting a sign contractor bond. The surety company decides how to underwrite the bond and may consider other parts of your application in addition to credit.

How fast can I get Sign Permit Bonds?

Timing depends on the surety’s underwriting requirements. Some applications can be processed quickly, while others may take longer if additional review is needed due to credit or other financial factors. Having your licensing paperwork and business information ready can help avoid delays.

If you’re unsure which bond you need, BOSS Bonds can review your licensing paperwork and help identify the correct bond at no cost.