The Virginia Department of Agriculture and Consumer Services regulates extended service providers in the Commonwealth.
A condition of licensing is that a minimum $10,000 surety bond is required.
AmeriPro Surety Bonds provides this surety bond in the amount required as both a new and renewal surety bond.
While the minimum amount of the Virginia extended service contractor provider bond required is $10,000, the amount that a company licensee will require is based upon the dollar value of unexpired extended service contracts.
The breakdown for surety bond amounts is as follows:
Up to $50,000 $10,000 surety bond
$50,001-$300,000 $40,000 surety bond
$300,001-$750,000 $65,000 surety bond
$750,001 and up $90,000 surety bond
Applicants for the Virginia extended service contract provider bond will have a premium amount determined by the following:
As a broad general rule, an applicant with good credit may typically expect to pay about 1% for the surety bond amount required; however, amounts will vary based upon any and all of the three factors listed above.
The Virginia extended service contract provider bond is a financial guarantee which ensures your compliance with the Extended Service Contractor Act.
The bond also protects customers of any employees, managers, or agents of an extended service contractor provider who is shown to have violated provisions of the Act which in turn causes some harm.
As principal of this surety bond, you and your company are liable if any claims were ever paid against your surety bond.
AmeriPro Surety Bonds is a surety bonds-only agency. We provide license and permit, contractor, court, and fiduciary surety bonds throughout Virginia and nationwide.
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