Unlike many other types of bonds that are designed to protect the government or consumers, utility deposit surety bonds protect the utility company.  Utility deposit surety bonds guarantees that the utility customer will pay the utility for the utilities used by the customer.  Many utility companies require this type of surety bond before they will turn on the utilities, initiate service or otherwise give the user access.

UTILITY DEPOSIT SURETY BOND COST

Like a wage and welfare bond, a utility bond is a financial guarantee not a performance guarantee.  Financial guarantee bonds are the least favorite of surety bonding companies because the only remedy is payment in most cases.  If a consumer cannot pay their utilities, the surety bonding company’s recourse is most likely limited if non-existent.  Consequently, the cost of utility deposit surety bonds are generally more expensive than other types of bonds.