What is a Waste Tire Hauler Bond?
Waste management businesses and individuals, including those who transport tires as waste tire haulers, are highly regulated. State and local authorities may require waste tire haulers to maintain a license to operate a business within a specific jurisdiction.
One of the licensing requirements for becoming a waste tire hauler is a waste tire hauler bond, which is a type of surety bond.
A waste tire hauler bond protects the state and the customers who interact with waste tire haulers. Should a waste tire hauler fail to safely transport waste tires in line with current rules and regulations, customers can make a claim against the waste tire hauler bond.
Waste Tire Hauler Bond Obligee Details
Surety bonds, including waste tire hauler bonds, are contractual agreements between three parties. The waste tire hauler is the principal of the bond, while the obligee of the bond is the entity or organization requiring a bond to be in place as part of business licensing requirements.
The third party in the contract is the surety company providing the bond to the waste tire hauler.
The obligee of a waste tire hauler bond differs from state to state. For example, in California, the obligee of a waste tire hauler bond is the California Department of Resources, Recycling, and Recovery. Check with the local licensing authority or ask the surety company if you are unsure of the obligee of your waste tire hauler bond.
Who Needs a Waste Tire Hauler Bond?
Any individual or company operating as a waste tire hauler for primary business purposes may need to complete the licensing process.
Some states require a waste tire hauler bond for licensing, but not every state has the same requirements and not every business transporting tires is a waste tire hauler under the law.
For example, anyone who moves 40 or more tires as waste is considered a waste tire hauler in the state of California, but in Iowa, the threshold is 10 waste tires. It is important to check with state and local licensing authorities to understand the definition of a waste tire hauler and bonding requirements specific to your location.
How do You Get a Waste Tire Hauler Bond?
A waste tire hauler or someone in the process of getting licensed may receive a quote for a waste tire hauler bond by submitting a brief online application.
Once the application is received and their credit is reviewed, the surety company provides information on the price of the bond, how to make payment, and details regarding finalizing the process.
How Much Does Waste Tire Hauler Bond Cost?
A waste tire hauler bond is priced similarly to other surety bonds. The amount of bond required by the licensing authority in your state plays a role in how much you pay for the bond itself.
The total bond amount is not the out-of-pocket cost. The price of the bond is calculated as a percentage of the total bond amount, which is typically between 1 and 10 percent.
Can I Get a Waste Tire Hauler Bond with Bad Credit?
The surety company providing a waste tire hauler bond determines the percentage paid by waste tire hauler by taking a close look at their credit history and their track record with past claims.
If credit is an issue or has been in the recent past, the cost for a waste tire hauler bond is likely to be higher. Good credit and a minimal history of surety bond claims result in a lower waste tire hauler bond price.