What is a Waste Tire Hauler Bond?
As with other waste management businesses and individuals, those who transport tires as waste tire haulers are highly regulated. State and local authorities may require waste tire haulers to apply for and maintain a license to operate a business legally within a specific jurisdiction. One of the licensing requirements for being a waste tire hauler is a surety bond, known as a waste tire hauler bond.
A waste tire hauler bond is designing to provide some form of security to the state requiring waste tire haulers to maintain a valid license, as well as the customers who interact with waste tire haulers. Should a waste tire hauler fail to transport waste tires in a safe manner in line with current rules and regulations, a claim may be made against the waste tire hauler bond.
Who Needs a Waste Tire Hauler Bond?
Any individual or company that operates as a waste tire hauler as part of their primary business activities may need to complete the licensing process in order to operate a legal business. In some states, one of the licensing requirements of a waste tire hauler is to secure a waste tire hauler bond. However, not every state has the same requirements, and not every business transporting tires is a waste tire hauler under the law.
For instance, anyone who moves 40 or more tires as waste is considered a waste tire hauler in the state of California. In Iowa, however, 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.
Waste Tire Hauler Bond Obligee Details
Surety bonds, including waste tire hauler bonds, are a contractual agreement between three parties. The licensed waste tire hauler is known as 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 to 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. In California, as an example, the obligee of a waste tire hauler bond is the state's 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.
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. Fortunately, the bond amount is not the out-of-pocket cost. Instead, the price of the bond is calculated as a percentage of the total bond amount, typically between 1 and 10%.
The surety company providing a waste tire hauler bond determines the cost by taking a close look at an individual's credit history and 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.
How do You Get a Waste Tire Hauler Bond?
A licensing 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 credit is reviewed, the surety company provides information on the price of the bond, how to make payment, and details regarding finalizing the process.