Car Wash Bonds Overview
The main purpose of car wash bonds is to protect employees working at car washes. The exact requirements vary by locations, but usually car wash bonds make sure car wash employees are paid on time and for all of their overtime labor. Car wash owners must also comply with local minimum wage laws.
As with any type of surety bond, if the principal of the bond violates the bond agreement, they can face a claim. In case the claim is proven in court, the principal is responsible for financially reimbursing the claimants for the loss they caused. The sum, however, may not exceed the maximum penal sum of the bond.
Apply online now using our online application, or read on for more details on car wash bonds. For any questions, call us at (866)-450-3412 and we’ll be happy to help.
Car Wash Bond Cost
Car wash owners often want to know what the cost of obtaining the bond is. To calculate your costs, you need to know what the total value of the car wash bond is. The total value of the bond is determined by the state or local authority which requires it.
California now require $150,000 car wash bonds, which was a big increase to the $15,000 amount required prior to January 1 2014. In 2015, New York City also adopted a car wash bond requirement, and its value is between $30,000 and $300,000.
To get a car wash bond, owners pay a yearly premium, which can be as low as 0.75% - 2.5% of the total value. Sureties frequently consider other factors, such as personal and business financial statements, resume, and others. Our surety bond cost guide contains a wealth of information on bonding tips, as well as tips on reducing your premium.
Getting a Car Wash Bond with Bad Credit
Where sureties are concerned, a low credit score, credit report issues, or even no credit score are all considered as red flags. Since surety bond companies are responsible for any claims you cause, they will underwrite bad credit surety bonds with more scrutiny.
Our Bad Credit Program can help you get bonded regardless of your credit score. We have the expertise to negotiate the lowest rates on your behalf, and provide personalized advice for your specific case. In the case of car wash bonds, for example, providing financial statements can be very beneficial.
Apply for a Car Wash Bond Today!
Start your online application today, and we will seamlessly take you through the whole underwriting process. Our application is only a page and takes just a few minutes to complete.
With Bryant Surety Bonds you get bonds issued only by A-rated and T-listed bonding companies, which is a promise that your bond will always be accepted by the obligee. It’s also a guarantee that you will get the lowest premium.
Car Wash Bond Requirements by Location
Currently only California and New York City require car washes to post a surety bond. In order to stay out of claims, it’s important to know something about the specific requirements of each bond.
Be sure to read Section 351 and Section 353, as they outline your financial obligations to employees. These include paying wages, interest on wages, and fringe benefits. It is illegal to operate without a surety bond or a collective bargaining agreement.
New York City
The Car Wash Accountability Act came into force at the end of 2015. Be sure to read all of its provisions so you can stay out of claims. The total amount it requires are between $150,000 and $30,000 depending on the number of employees, but the amount drops to $30,000 if the car wash signs a bona fide collective bargaining agreement.