Street Permit Bond

About This Street Permit Bond

This street permit surety bond, like any surety bond, is a three-way agreement between a Principal (the contractor filing for the bond), an Obligee (the municipality requiring the bond), and a surety company (the company backing the bond). This street permit bond is a legally-binding agreement between the Principal and Obligee that guarantees the Principal understands and agrees to fully comply with all rules, regulations, ordinances, and statutes put forward by the Obligee in regards to any and all permitted work on the public way. In the event that the Principal fails to complete the contracted work, violates the terms of the contract or bond, or incurs any financial damages resulting from the project, the surety bond will cover any initial repayments - the Obligee is free from any financial obligation resulting from the project. Once the surety bond makes repayments, the Principal is then obligated to repay the surety for the full amount of damages, including any associated fees or penalties. This surety bond is a protective device from the municipality, as well as the public, from being required to pay for any damages on behalf of the Principal.

In the event of a violation, a claim will be filed against the surety bond. The surety company may revoke the bond at any point, and the permitted work will not be allowed to resume until a new bond is filed. Therefore, it is extremely important that the Principal, and all employees, agents, or contractors working under the Principal, clearly understand what is required of them to remain compliant with all agreements of the bond.

Bond Terms
Amount and Term
Starting at $5,000 for One Year
Starting at $100 for One Year
Issue Type
Instant Issue
Instant Issue Bolt

Specific to the municipality

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Street Permit Bonds
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General Questions

What is a Street Permit Bond?

A street permit bond is a surety bond between a municipality in Massachusetts, the Principal (the contractor) and the surety company. The bond is a guarantee that the Principal understands and will comply with all laws and regulations pertaining to alterations of public ways, will cooperate with government agencies, and will not defraud customers, violate  agreements, or act negligently.

How do I know if I need a Street Permit Bond?

If you have been contracted to work on a public way in the state of Massachusetts, you will likely be required to file a street permit surety bond. The municipality you are contracted to work for will inform you of this requirement.

What should I do in the event of a claim against my Street Permit Bond?

We advise that you explore all options to resolve any issue that could result in a claim before it is filed. If you are unable to do so, the surety will handle any remittance of damages to your client, at which point you will be liable for full repayment to the surety. In addition, a claim is a mark against the broker and could interfere with license renewals, not to mention the outward reputation of the broker and associated agency.  Read more about wrongful claims below.

What if I have a false claim against my bond?

If you feel the claim is false or exaggerated, your surety will complete all due diligence and deny the claim. In this case, you can continue your business as usual. Claims that are found to be invalid against your bond will have no effect on your permit, bond, or business operations.

How can I avoid claims against my a Street Permit Bond?

It should be a top priority to avoid claims against your bond at all costs. If a claim is filed, the principal is obligated to reimburse the surety for the entire amount that was paid out. If there is an issue that may result in a claim, it is advised that the bond-holder do whatever they can to resolve the issue before this becomes the case. Your surety bond is a promise to fulfill your obligations and duties, as well as follow the law. A claim against this bond indicates that the bond-holder knowingly and intentionally violated this agreement. If you are operating in compliance with the agreement, the potential claim may stem from a miscommunication with a client. It is very important to clear up this miscommunication before the claim is submitted. The Principal is legally responsible for all valid claims submitted against them.

Your surety will give you the chance to resolve the claim. If you fail to resolve the claim, your surety will issue repayment, and you will be obliged to reimburse the surety for damages.

Application Questions

Is it difficult to get a Street Permit Bond?

This street permit bond is an instant issue bond, meaning that it is delivered as soon as you submit your application and payment. This bond does not require underwriting, and is very simple to get.

Why do I need a Street Permit Bond?

Any contractor who will be working on a public way is required to file a surety bond to protect the taxpaying public against financial damages that could possibly arise should the contractor violate the agreement, act fraudulently, or cause issues resulting from negligence or malfeasance.

Who is the obligee for my Street Permit Bond?

The Obligee for your surety bond will depend on the municipality that you are completing the permitted work for.

How long will it take for me to get a Street Permit Bond?

MassBond issues Massachusetts Street Permit Bonds instantly, meaning that a PDF of your bond will be delivered as soon as you complete your application and submit payment. Additionally, there are multiple shipping options available for the physical copy of your instant bond.

Financial Questions

How much does a Street Permit Bond cost?

The premium for this surety bond is $100 for 1 year, with a bond coverage amount of $5000.

Can I get a Street Permit Bond with bad credit?

Instant Issue bonds to not require underwriting, and therefore do not require credit checks.

How is my bond premium calculated?

The premium for a Massachusetts street permit bond is set at $100 for 1 year.