Bonding for an event
My town is starting to require a $5000 bond for event planners. Everyone is up-in-arms insisting that it will cost $500, which will hurt non-profits and smaller organizations. I don't believe the $500 is accurate. We have events such as a biker rally that spans three days and attracts 10s of thousands of motorcycles and bikers, to an afternoon tasting of local restaurant fare, to a ministerial alliance Easter egg hunt in the city-owned park. I can't believe each of these events would be charged the same for a $5000 bond. Can you offer some insight?
That's a great question! Surety bonds are put in place for two reasons:
1) to ensure that business professionals follow all rules of the state/city and industry while on the job, and
2) to serve as a barrier of entry into the industry for professionals who are likely to disregard these rules and regulations
Because of the new surety bond requirement, it's likely that there have been some issues in the past with professionals conducting business ethically and lawfully. Requiring a surety bond will change that.
Without knowing the city and state, our educational outreach team can't do much research on this new bond requirement. With this information, we'd be able to research legislation and even check into pricing information to determine if this bond is credit-based or not and who exactly is required to post it.
For more information, feel free to give us a call at 1 (800) 308-4358 or send an email to our Educational Outreach Director, Sara Aisenberg, at Sara@SuretyBonds.com.