This bond is also called a Nevada Excavation Bond, Reno Excavation or Encroachment Bond, or Nevada Encroachment-Excavation Bond.
What is a surety bond, and why do I need one for my Nevada Excavation Permit?
A surety bond is a three-way agreement between a Principal (The individual applying for a Nevada Excavation Permit), an Obligee (City of Reno), and a surety company (the company backing the bond). It acts as a protective measure for the Obligee, in the event that the Principal fails to follow the guidelines set forth by their permit and bond. If the Principal violates this agreement, the Obligee has no liability for any financial losses or damages. A surety bond does NOT act like insurance for the Principal – they guarantee that there will be payments made out in the event of any damages, but will pursue the Principal for the full amount of the damages after settling a claim.
The yearly amount of a Reno Excavation Permit Bond is $5,000, but this is not what the Principal will pay. The prices for this bond are as follows:
- 1 year – $115
- 2 years – $201.25
- 3 years – $287.50
This bond does not require a credit check, and will be issued within 1-3 days of your completed application submission.
In, during the course of your permitted excavation work in Reno, there are any damages or liabilities that occur, Reno and the public are free from any financial obligations. Your surety company will make initial payments to the damaged party, at which point you will be required to repay the full amount to your surety, including any associated fees. It is very important that you and your employees understand the terms of your permit and your surety bond, and to avoid claims against your bond. In the event of a claim, your surety company may revoke your bond. If this happens, your permit will be invalid until you are able to file a new bond.
A claim against your bond acts like a mark against your “credit,” and a history of claims against your bond will complicate any future applications. Just as it is very important to follow the terms of a permit you are issued, you must do the same to maintain your surety bond.
1 year - $115
2 years - $201.25
3 years - $287.50
Your bond will be issued within 1-3 days after you submit a completed application and payment.