We can provide any kind of bond needed by a Auto Dealer.
We have been providing license bonds for over half the auto dealers in Florida since 1982.
If you have questions about becoming a licensed dealer in Florida please consult the Florida DMV web site by: Clicking Here
This link also contains a list of the DMV regional offices. Click Here
Dealers realize that, by keeping their license bond with us instead of their Garage Liability carrier, they save time and trouble. No matter how often they change Garage Liability Insurance carriers, they never have to be concerned about their bond being cancelled as a result of the change.
Premium Payment Guarantee Bonds
We originated the bond form used by various Workers’ Compensation carriers which bonds the spread between the minimum and maximum premiums in paid loss retro workers’ compensation plans. Since 1986, when we first designed the bond form, dealers have continued to embrace the use of these bonds, as opposed to other means of providing security to the workers’ compensation carriers, due to the following advantages:
- Dealers are not required to post collateral for these bonds.
- Unlike letters of credit, these bonds are not reflected as a liability on the Dealer’s financial statements.
- The Dealer’s cash or lines of credit are not tied up to secure their workers’ compensation insurance plan.
- At workers’ compensation renewal time, carriers are not forced to “call” on a bond, as they must do on a letter of credit to secure their interest, if the renewal security is not yet in place. This is because of the 15-month discovery period included on the bond. This can be an important factor at renewal time, when there are often issues to be dealt with right up to the last minute.
Most utility companies, such as electric companies and water companies, will accept the posting of a bond in lieu of cash as a deposit. Let us provide a bond so that your cash is freed up for other investments.
Lost Instrument Bonds
These are required when a check or other “instrument” is lost and the bank requires the posting of a bond before they will issue a new or replacement check for payment.
These are required by the court to be posted when you need to recover an automobile or other property that someone refuses to return or surrender. This is usually the result of a “spot” delivery that the dealership is unable to get financed.
These are required by Government entities, such as the State or Counties, if you want to bid on a contract to supply vehicles.
This Bond is required in conjunction with the Bid Bond to insure you will “perform” the delivery of the vehicles in accordance with the price and terms of your bid.
Required by the court to be posted if an award or judgment is to be appealed.
Required by the Federal Government to be carried in the amount of at least 10% of the amount in retirement or other 401K plans.
It is important to make a clear distinction between insurance and Bonds.
A Bond would be more like self insurance.
All bonds require a signed indemnity agreement which means the Dealer will indemnify the Bonding Company should a claim or any other monies ever be paid.
For example, if a claim is filed against a Dealer’s license bond, the dealer would be wise to have his/her attorney or the attorney retained by the Garage Liability insurance carrier provide a “Courtesy Defense” on behalf of the Bonding company.
Otherwise, in accordance with the indemnity agreement, if the bonding company has to retain its own Counsel, the Dealer will be billed for those fees.
For a link to all states Department Of Motor Vehicles web sites: Click Here