Pest Control Bond: Everything You Need to Know
What is a pest control bond?
A pest control bond is a license and permit bond that protects customers from businesses that use pesticides and conduct pest control services. Companies in certain states must obtain this bond before becoming registered or licensed to run pest control operations. The bond guarantees that organizations comply with local, state, and federal pesticide use laws.
How do pest control bonds work?
Pest control bonds are three-party contracts between a surety, an obligee, and a principal.
- Principal: The pest control business
- Obligee: The authority that requires the pest control organization to get bonded
- Surety: The company that issues the bond
If you’re the principal, you agree to abide by the bond’s terms and conditions. If you don’t, someone can file a claim against your bond. For example, if you do not file the local pest control license requirements, they can file a claim against you. If the claim is valid, you must pay for the damages. You could pay up to the total bond value to compensate injured parties. Not only can bond claims be costly to settle, but they can hurt your reputation and ability to get bonded again in the future.
Get Your Pest Control Bond:
Quick Takeaways
- A pest control bond protects customers from businesses that use pesticides and conduct pest control services.
- If you live in California, Tennessee, Arkansas, or Alabama and wish to operate a pest control or related business, you may need a surety bond.
- You may expect to pay around 1-5% of your bond as your annual premium if you have a good credit score.
What states require pest control bonds?
If you live in any of these states and want to operate as a pest control or pesticide use business, you may need a surety bond. Pest control bonds ensure companies use chemicals safely and correctly.
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California
The California Department of Consumer Affairs Structural Pest Control Board requires pest control businesses to post a $12,500 surety bond.
Alabama
The Alabama Department of Agriculture requires applicable companies to post a $2,500 pest control bond.
Arkansas
The Arkansas State Plant Board requires in-state businesses to post a $50,000 bond as part of the licensing process and to ensure they follow the Arkansas Pesticide Control Act.
Tennessee
The Tennessee Department of Agriculture requires pest control operators providing any of the following services to post a $50,000 bond for three years. Then the required bond amount drops to $10,000.
- General pest control
- Bird control
- Rodent control
- Wood destroying organism control
- Fumigation
If you’re planning to work in any of these areas in Tennessee, you must post a $10,000 pest control bond.
- Agricultural
- Horticultural
- Pest control consultant
- Soil fumigation
- Wood preservatives
- Aquatic pest control
- Forest pest control
- Public health mosquito control
- Weed control
How much does a pest control bond cost?
The cost of your bond will depend on your state requirements and factors like your credit score and business financials. You will pay a small percentage of your total bond amount. The better your credit score, the lower premium you will pay. You can expect to pay around 1-5% with good credit. For example, if you need a $10,000 bond and your rate is 2%, you’ll pay $200 per year.
What if I have bad credit?
You may still apply and get approved for a pest control bond. Your rate might be higher, however. ZipBonds can shop for the best rates available, so you get the bond you need at affordable pricing.
How to Apply for a Pest Control Bond
Pest control bonds are easy to apply for and are quickly issued. Apply below to get your bond today. If you have any questions about the process, you can connect with one of our team members by calling 888-435-4191 or emailing support@zipbonds.com. Our goal is to get you bonded in a flash!
About ZipBonds.com
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.