What is a Montana marijuana bond?
A Montana marijuana bond ensures a business will uphold state and industry laws and regulations. This bond may go by other names, including medical marijuana bond, cannabis surety bond, or marijuana testing laboratory bond.
Cannabis bonds help hold marijuana-related businesses accountable. They also protect other companies, individuals, or state organizations that may suffer financially if the marijuana establishment wrongs them. For marijuana testing laboratories, surety bonds may protect other parties against loss, theft, or diversion of marijuana items.
How do marijuana surety bonds work in Montana?
A Montana marijuana bond is a three-party contract.
- Principal: The marijuana business that must obtain a surety bond
- Obligee: The party that enforces the surety bond requirement
- Surety: The financial institution that issues and backs the bond
If someone files a claim against your surety bond, you may settle it without getting the surety involved or prompt your surety to investigate the claim to determine if it’s valid. If it is, your surety may settle the claim for you, but you must later repay them in full.
Get Your Montana Marijuana Bond:
- A Montana marijuana bond ensures a business upholds state and industry laws and regulations.
- If you hope to run a marijuana testing laboratory in Montana, you may need to obtain a surety bond before getting your business license.
- If someone files a claim against your bond, you may settle it up front or prompt an investigation to determine the claim’s validity.
Who needs a Montana marijuana bond and why?
Surety bonds help prevent illegal activity in the marijuana industry by holding businesses accountable for their actions and behavior. It also gives other parties greater confidence knowing the marijuana business they’re working with will operate ethically and honestly (or pay the consequences if they don’t).
If you want to run a marijuana testing laboratory in Montana, you may need to obtain a surety bond to receive your business license. Contact your licensing agency (the Department of Revenue) to determine if a surety bond is required. You can also contact ZipBonds. We’d be more than happy to answer any questions you have about getting bonded.
Here are some other links you may find helpful:
- Montana Department of Revenue Cannabis Control Division (for the latest information regarding licensing)
- Montana.gov (for bills and amendments on marijuana-related laws)
Montana Department of Labor & Industry (for marijuana facility requirements)
How much does a Montana marijuana bond cost?
You will pay a small percentage (typically 1%-5%) of the surety bond requirement in Montana at the time of your application. The better your credit score and financial situation, the lower your rate. So, for example, if you need a $25,000 bond and your rate is 2%, you might pay around $500 annually as your bond premium.
How to Get Your Montana Marijuana Bond
ZipBonds is certified to provide marijuana bonds to qualified businesses. You may begin the application process today by selecting your state below.
We offer the fastest and most secure option for getting bonded. Our all-digital platform is intuitive and straightforward. If you have any questions along the way, call 888-435-4191 to speak with an agent directly. We’re more than happy to help!
Founders Ryan Swalve and Zach Mefferd formed the vision for ZipBonds.com when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”
Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.