Massachusetts License Plate Manufacturer Bond |
AmeriPro Surety Bonds | 844-589-9732
License Plate Manufacturing in Massachusetts
To be come a manufacturer of license plates in the Commonwealth of Massachusetts, you must:
- Qualify as an IRS tax-exempt organization under 501(c)(3) of the Internal Revenue Code;
- You must be a charitable organization;
- You must meet the other criteria founder the checklist created by the Massachusetts Department of Transportation.
You must also furnish the Department with a $100,000 surety bond. AmeriPro Surety Bonds provides this bond for both new and renewal plate manufacturer licensees.
The Cost of the Surety Bond:
The cost, or premium of the Massachusetts license plate manufacturer bond will typically range between 1-2% of the bond’s amount.
To determine the premium, a detailed surety bond application will be required. It is detailed principally because of the amount of surety required.
Also, as part of the underwriting process (the process which determines the amount of surety bond), a credit check of your or your charitable entity will be required.
Once issued, the bond is active for one year from the date of issuance. The premium will therefore renew on an annual basis.
The License Plate Manufacturer Bond: Its Purpose
The purpose of the Massachusetts license plate manufacturer bond is a financial guarantee which is a financial pledge of your compliance with all rules governing the production of licenses in the Commonwealth.
As specifically mentioned in the bond wording, the surety bond protects against any loss, damage, or expenses which are a result of the noncompliance with the with the agreement with the Department of Transportation.
While the surety bond is required of your manufacturing business or charitable entity, its benefit is solely for the Commonwealth; it is not a liability insurance policy.
As the principal of this bond, your charitable organization is responsible for any claims paid by the surety against your bond, should that occur.
AmeriPro Surety Bonds is a surety bonds-only agency which provides license and permit, contractor, court, and fiduciary surety bonds throughout all of New England.
Our agency also provides surety bonds nationwide.
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