The state of Utah requires certain businesses and professionals to post a surety bond to protect consumers.
Alongside bonds required by the state, some cities and counties in Utah require bonds as well. Many of these local bonds involve excavation and site improvement work. Salt Lake City, for example, requires a “City Work in the Public Way" surety bond.
To make sure you are in compliance with Utah bonding regulations, talk to one of our specialists today. We offer policies for several UT businesses, including:
You must post a $25,000 bond to the UT Commerce Department's Division of Real Estate if you wish to be licensed as an appraisal management company (AMC). Its purpose is to allow your clients to be compensated if they are harmed by unlawful conduct by your business. The annual premium for an AMC bond in Utah starts at just $250.
Collection agencies must post a $10,000 surety bond to the Utah Commerce Department along with your license application. The cost for your UT collection agency bond is just $100.
If a debt collector fails to report and pay collections to a client, or otherwise violates the terms of the bond agreement, money from the bond can be used to compensate the injured party. The agency must then repay that amount to their surety company.
Contractors working in Utah must post a surety bond to Utah Division of Occupational and Professional Licensing. The amount of the bond varies depending on what kind of contracting business you operate:
Specialty contractors in many trades fall into the $15,000 bond category. Whichever bond you choose, your cost will be only a small percentage of the bond coverage amount listed above, and it will vary depending on your credit rating and business finances.
Utah licenses a number of different motor vehicle–related businesses, some of which require surety bonds. Here are a few of the automotive business categories for which the Motor Vehicle Enforcement Division of Utah's State Tax Commission requires you to be bonded:
Surety bonds serve to shield consumers, the state, and other companies with which you do business from financial loss resulting from unethical or illegal practices by your company. Your premium will vary with the bond size and your credit rating.
To obtain a license to act as a third-party administrator, you must provide a surety bond to the Utah Insurance Department. The amount of this bond varies between $5,000 to $500,000 and is tied to the size of your business.
A TPA bond must have a coverage amount equaling no less than 10% of the total funds handled by the administrator, with a minimum bond requirement of $5,000. Utah's maximum bond requirement for third-party administrators is set at $500,000.
TPAs provide operational services like claims processing, retirement plan administration, and employee benefits management under contract to other companies. The bond protects the clients of the third party administrator. Should financial losses occur due to unethical or unlawful handling of assets, the injured party can be compensated from the bond, which must then be paid back to the surety.
|Bond Name||Coverage Amount||Cost
|Appraisal Management Company Bond||$25,000||$250*||Utah Division of Real Estate|
|Collection Agency Bond||$10,000||$100||Utah Division of Corporations and Commercial Code|
|Contractor's License Bond||$15,000/$25,000/$50,000||Varies*||Utah Division of Occupational and Professional Licensing|
|Motor Vehicle Dealer Bond||$10,000/$20,000/$75,000||$120/$240/$900||Utah Motor Vehicle Enforcement Division|
|Third Party Administrator Bond||$5,000-$500,000||Varies*||Utah Insurance Department|
* Cost can vary depending on the bond amount required and your credit rating
Our knowledge of Utah bond requirements enables us to provide accurate quotes quickly. For help through the process of selecting the surety bond for your business, talk to one of our experts today.