For energy broker businesses, this surety bond is often required prior to being able to encourage customers to switch energy providers based on competitive rates and other factors.

1. ENERGY
BROKER BOND
Presented By:

2. What is an Energy Broker Bond?
If you are an energy broker, your state may require you to obtain an
energy broker bond before working in the industry. Each state has
its personal requirements.
An energy broker bond is similar to other surety bonds in that it
serves as a guarantee that your business will practice according to
regulations set by the industry.

3. Since many states have deregulated the energy markets, more people
have access to competitive energy rates for their utilities.
To help ensure that energy brokers are working by state regulations,
they often require companies to purchase a surety bond to help protect
consumers.
How does it work?
If it is believed that the energy broker did not meet the terms of the bond, then a claim can be filed on the
bond to recoup damages or lost funds. The surety company will determine if the claim is valid and then
make a payment up to the total bond amount.
The energy broker would then be responsible for paying that money back to the surety company.

4. 3 Parties Involved:
THE PRINCIPAL
The principal is the party that is required to purchase the surety bond, in this
case, the energy broker.
How does it work?
THE SURETY
The surety is the underwriter of the bond. They are the agency backing the
energy broker with a guarantee of their work.
THE OBLIGEE
The obligee is the agency that requires the principal to obtain the surety bond.

5. How do you
secure this bond?
1. Fill out a simple application (from a surety company) to get
the most accurate quote.
2. Once you’ve submitted all the information, you will be given a
quote on the amount needed to pay the premium for your energy
broker bond.
3. You will only pay a percentage of the total bond amount.
4. After payment is received, your bond paperwork will be
sent to you quickly so that you don’t have to wait long to
complete your state’s requirements before getting to work.

6. https://suretybondauthority.com/energy-broker-bond/
SOURCE:
800-333-7800
www.suretybondauthority.com