Utility Bonds

Utility Bonds protect utility providers and help businesses secure service. Many commercial and industrial customers are required to post a Utility Bond before receiving electricity, water, gas, sewer, or telecommunications services. These bonds ensure payment and compliance while allowing businesses to operate without interruption.

Apply below,  call our Commercial Department at 407-786-7770 or email us at [email protected]

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Business Services Bond

Why You Need a Utility Bond

  • Guarantee Payment: Ensures the utility company is paid even if your business experiences cash flow issues
  • Enable Service: Required for many commercial and high-usage accounts
  • Avoid Cash Deposits: Keep working capital free while meeting utility requirements
  • Compliance: Meets utility company and municipal regulations
    Protect Reputation: Shows your business is financially responsible

Utility Bond FAQs

These are some of the most common questions asked about Utility Bonds and how they work.

A Utility Bond is a commercial surety bond that guarantees the utility company will be paid for services rendered. If the business fails to pay, the utility provider can file a claim against the bond. This protects the utility and allows the business to maintain service without large upfront cash deposits.

The cost is a surety premium, usually 1–10% of the bond amount. Factors affecting cost include:

Bond amount required by the utility provider
Business and personal credit
Company size and risk profile
Number of locations or service accounts
Example: A $50,000 bond could cost between $500 and $2,500 annually, depending on underwriting.

Principal: The business receiving service
Obligee: The utility company
Surety: The bonding company guaranteeing payment
If the business fails to pay, the utility company can file a claim. The surety pays up to the bond limit and the business reimburses the surety.

Utility Bonds are commonly required for:

New commercial accounts
High-usage or industrial clients
Businesses with limited or poor credit history
Contractors or temporary job-site service connections
Businesses reinstating service after non-payment

Call us at 407-786-7770 or email us at [email protected]