Utility deposit surety bonds are offered as a secure financial guarantee that any bill for utilities will be paid on time by a customer. In today’s tough economy, most utility companies require utility deposit surety bonds to be purchased as a deposit before the power can be turned on for a consumer.
The utility deposit surety bond is a way for the utility company to protect itself from the possibility of non-payment from the consumer. The utility deposit surety bond also protects the consumer because it prevents the utilities from being turned off due to late payment.
A surety bond protects the party requesting the bond, the Obligee, against any financial losses as a result of poor financial decisions, damages, unethical decisions, or a failure to follow state and local laws on the part of you, the Principal. The Minnesota Utility Deposit Bond holds you accountable for your business decisions.
By possessing a Minnesota Utility Deposit Bond, you are telling your Obligee that you can be trusted as a Principal and that you stand behind your business decisions.