Private Water Systems Bond

A private water systems bond is a type of surety bond required for contractors who work on private water systems.
Key Highlights
- These bonds are issued to private water systems contractors, who are registered to construct a private water system, develop a well, install pumping equipment, or repair, seal, or abandon a private water system.
- The bond ensures clients will receive compensation if the contractor fails to comply with registration regulations.
- Most states require bond amounts ranging from $10,000 to $25,000, and the annual premium is 1 to 5% of the total bond amount.
How do I purchase a private water systems bond?
NFP, the nation's largest and most reliable surety company, is authorized to issue private water systems bonds in each of the 50 states. We can provide the best rates for your bond, as well as the fastest issuance, to get your business off and running.
Our short online application makes it easy. Click below to start the application process today.
Private Water Systems Bond FAQs
A private water systems bond is required by a private water systems contractor, which is defined as someone who is registered to, among other services, construct a private water system, develop a well, install pumping equipment, or repair, seal, or abandon a private water system. The bond ensures clients will receive compensation if the contractor fails to comply with registration regulations.
A private water systems bond is specifically required for individuals or businesses registered as private water systems contractors. These contractors are involved in services such as constructing private water systems, developing wells, installing or repairing pumping equipment, and sealing or abandoning private water systems. The bond ensures that these contractors comply with all relevant regulations and licensing requirements, and it provides financial protection to clients or regulatory agencies in case of noncompliance or substandard work.
This requirement is typically enforced by state or local health departments or environmental agencies, and it applies to both residential and commercial projects that are not connected to public water utilities.
The cost of a private water systems bond depends on the state's required bond amount and the contractor's creditworthiness. Most states require bond amounts ranging from $10,000 to $25,000, and the annual premium is 1 to 5% of the total bond amount.
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