Overview of Outdoor Advertising Bond Requirements
Outdoor advertisers and certain contractors are required to obtain such a bond in numerous states or in certain cities and counties. Typically the state Department of Transportation requires this bond to be posted, though this may differ in some states.
The bond guarantees compliance with state laws concerning the constructing, placement, maintenance, and removal of outdoor advertising signs such as billboards. If an advertiser does not comply with these laws, a claim can be filed against their bond, and claimants may receive compensation up to the full amount of the bond, also known as the penal sum.
States that currently require this type of bond, or a similar bond are: Delaware, Florida, Illinois, Michigan, Minnesota, Mississippi, Oregon, Pennsylvania, Texas, Virginia, Wisconsin.
If you’re new to bonds, have a look at our detailed ‘What is a surety bond’ guide for more information!
See the sections below to find out how much your bond may cost, what may give rise to a claim against this type of bond, and how to get bonded.
If you have any questions about this bond or the bonding requirements in your state, give us a call at (866)-450-3412!
Cost of Your Bond
The bond amount is determined by your state, county or city. Below is a list of some of the amounts for this kind of bond:
- Delaware - $5,000
- Florida - $5,000 in the City of Jacksonville
- Illinois - $25,000 in the City of Chicago
- Minnesota - $8,000
- Mississippi - $1,000 but $5,000 in the City of Jackson
- Pennsylvania - $5,000
- Texas - Varies, $2,500 - $10,000
- Virginia - $1,000
- Wisconsin - $5,000
The cost of your bond is a percentage of the total amount of your bond. When you apply for your bond, your surety will provide you with a rate which is based on your personal credit score, as well as other indicators of your personal financial status.
Applicants with high scores typically get a low rate. The exact cost of your bond will depend on the amount of your bond but if you have a high credit score you can get this bond in many states for as little as $100.
Get a free quote by completing a bond application form. You will hear from us shortly!
Getting Bonded With Bad Credit
You can get this type of bond, regardless of your credit score!
Our Bad Credit Program makes it possible for applicants with lower scores to get bonded quite easily. Rates under this program are slightly higher but we always strive to find the best and lowest possible rate for all our clients.
Visit the program page to find out more about getting bonded with low credit, and to request a quote!
Claims Against Your Bond
Most of these bonds are required to guarantee that advertisers will erect, maintain and remove advertising signs as required by law. For example, in the state of Texas, the bond is conditioned to provide payment for the removal of a sign which is unlawfully erected or maintained.
Under the Minnesota statutes, on the other hand, the bond is conditioned to guarantee that advertisers will faithfully their duties and comply with any laws that apply to the installation of signs.
Whenever the condition of a bond is violated by a bonded party, a claim can be filed by a state authority against the bond to request compensation. In this instance, the surety which has issued the bond needs to pay out compensation to the state up to the full amount of the bond. In return, the bonded advertiser or contractor must repay the surety in full.
Since bond claims are difficult and costly to handle, bonded persons and businesses are always advised to strictly comply with any legal requirements in order to avoid giving rise to a claim.
Get Bonded Today!
Start your application process by submitting a bond application form. We will then contact you with a free quote on your bond, along with further details about finalizing your application.
It takes about two working days for your bond to be issued. As soon as it is issued we will send you a copy by email, and send you the original by standard mail.
Give us a call at (866)-450-3412 to find out more about the bonding requirements in your state or to get help with your application!