Businesses are required to file a bond with the City of Hutchinson (the "Obligee") to activate their license. The bond protects the Obligee by transferring to a surety bond company the cost of ensuring the public is compensated for damages resulting from a licensed business breaking licensing laws.
How much does the City of Hutchinson License/Permit bond cost?
City of Hutchinson License/Permit bonds cost 0.5% of the bond amount.
Is a Credit Check Required for City of Hutchinson License/Permit Bonds?
Credit checks are not required for the City of Hutchinson License/Permit bond.
Why is the City of Hutchinson License/Permit bond required?
Businesses are required to purchase and file a bond with the City of Hutchinson to activate their license. The bond protects the Obligee by transferring to a surety bond company the cost of ensuring the public is compensated for damages resulting from the failure of a licensed business complying with the provisions of licensing laws.
How does the City of Hutchinson License/Permit bond work?
City of Hutchinson License/Permit bonds must be issued by an insurance carrier admitted by the KS Department of Insurance. The insurance company issuing any surety bond, such as the City of Hutchinson License/Permit bond, will also be referred to as the “surety company” or the “bond company”. The business is referred to as the Principal, the surety bond company as the Obligor and the City of Hutchinson as the Obligee.