How to Buy an Alcoholic Beverage Bond
If you are dealing with alcoholic beverages, be it selling, storing or acting as a dealer, you will need to be bonded in order to get a license. The state asks for a bond to ensure there are financial penalties for violating any legal provisions regarding the trade of alcohol. You can buy the bond from an alcoholic beverage bond agency.
To buy the bond, you should:
Research the kind of bond you need: Alcoholic bonds differ by state and the state agency that you will be required to submit the bond to will be different state to state. There are different bonds that fall under the umbrella of alcoholic bonds based on the segment of the alcoholic industry your business falls under, including ordinance tax bond, brewer’s bond, beverage tax bond, distilled spirits license bond, malt beverage license bond, wine bond and more. So, you’ll need to find out which bond you need.
Do your research: Look for a reliable and reputable alcoholic beverage bond agency. The name of the agency will also affect the credibility of your own bond. Many insurance companies offer such bonds. Alternatively, you can also try specialist agencies. Do remember to check their credit rating, and turnaround time. You can also ask for a quote. Some agencies will give it for free, while some will charge a nominal fee. This will help you do a cost comparison.
Apply online: The agency will have an online application that you can fill out and submit. Pay attention to the documents you will need. You may have to attach these or send them by mail. Once you have submitted your application, an underwriter will evaluate your bond.
Sign the agreement: Once the alcoholic beverage bond agency approves your application, you may have to sign an indemnity agreement. You will also have to buy the bond.