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A surety bond is a financial guarantee that a dealer will comply with state scrap metal laws. Not all states require one, but those that do treat the bond as a prerequisite to registration approval.
States Requiring Bonds
| State | Bond Amount | Notes |
|---|---|---|
| Alabama | $10,000 | Required per location |
| Florida | $10,000 | Required for secondary metals recycler registration |
| Georgia | $25,000 | Per location; continuous bond required |
| Louisiana | $10,000 | Required for all dealers |
| Mississippi | $5,000 | Per dealer, not per location |
| North Carolina | $5,000 | Required for registration |
| Oklahoma | $10,000 | Required per location |
| South Carolina | $10,000 | Required for nonferrous metal dealers |
| Tennessee | $10,000 | Required for registration |
| West Virginia | $25,000 | Required per dealer |
How to Get Bonded
Contact a licensed surety bond provider. Annual premiums for a $10,000 scrap dealer bond typically run $100–$300 depending on your credit score. Major providers include Surety Bonds Direct, SuretyGroup.com, and Bryant Surety Bonds. Most issue bonds within 24–48 hours. The bond certificate must be filed with your state licensing agency before registration is approved.
FAQ
The surety company investigates and, if valid, pays the claimant up to the bond amount — then pursues reimbursement from you. Having a claim paid typically results in your bond being cancelled, making it very difficult to obtain a new bond and continue operating in states requiring bonding. Operating in full compliance is the only reliable protection.
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