Oregon Salem License Bond

City of Salem, Oregon Business License Bond 

To receive a license for certain business types in the City of Salem, you may be required to obtain a City of Salem License Bond. The bond serves as a financial guarantee between you and the City of Salem that you will uphold the rules of Title III in the Revised Salem City Code protecting the public from damages

PURCHASE LICENSE BOND

Jet Insurance Company offers the lowest rates for this bond by cutting out middleman agents and brokers, getting this bond to you directly. Follow the link above to purchase this license bond online in minutes with Jet through our online bonding process!

What Businesses Need a License Bond in Salem?

Only certain businesses are required to purchase a surety bond to operate. When applying with the city for proper permitting, they will let you know if this bond is required. Below is a list of business in Salem that would need the bond:

How Much Does the City of Salem License Bond cost?

Rates for this license bond requirement start at $100 and can vary based on the bonding amount required by Salem for the license. For bonding amounts $10,000 or under the bond is always $100 and is ready for purchase following a couple quick questions. Between $15,000 and $25,000 bonding amounts the bond price ranges from $100 to $188.  

City of Salem License Bond Cost
bond limit Cost
$10,000 $100
$25,000 $250
$50,000 $375
 

For bonds amounts over $25,000 the rate for the bonds are based on a credit check of the business owner and start at $188 for a 1-year bond term. Jet also can offer payment for the bond on monthly or multi-year terms giving you the option to pick the best term for your business's future plans. 

Can Jet File the License Bond For Me? 

You bet! Jet will file the signed and sealed bond with the City of Salem. Other carriers and their agents or brokers, may charge you for sending the bond to you, which you will then send the bond to the City of Salem yourself. 

Jet will send you a copy of the bond for your records following the purchase of the bond. The original bond form is sent to the following location: 

City of Salem
555 Liberty St SE Room 325
Salem, OR 97301

Can I Cancel the License Bond and Get a Refund?

Yes, you can with Jet! Jet can quickly file a cancellation notice to the City of Salem and return any unearned premium to you.

The bond has a 30 day cancellation provision per the Oregon Secretary of State. The bond will not cancel until 30 days after Jet provides a written notice to the City of Salem, which does have to be taken into account on return premiums. 

If the bond cancels because of nonpayment for annual renewal premium or monthly payments a cancellation notice must be filed with the City of Salem. Jet can quickly file a reinstatement notice to the City of Salem once payment is made. We hope to keep your license in good standing by avoiding any cancellations, if possible.

How Do I Avoid Bond Claims?

To avoid issues with the City of Salem, the licensee must follow the rules and regulations set forth under Title III of the Revised Salem City Code. For example the code includes rules such as night club operators are to ensure accessibility to emergency exits or mobile food units must not operate in public right-of-ways. 

If the city discovers you are in violation of the code following a complaint and/or investigation by the city, licensees should abide by the determination of the city to avoid further disciplinary action including suspension or revocation of the license. 

Should there be outstanding fiscal damages a claim can be made against the bond, which further compounds the issue for the business license. 

What Happens If I Get A Bond Claim?

A violation can result in a bond claim up to six months following from the date of the violation. As soon as Jet receives notification of a claim on your bond from the City of Salem, we will send notice to you. It is important for you to provide all information you have relating to the incident(s), as Jet has 45 days to make a decision on the validity of the bond.

If the claim proves to be legitimate, Jet will pay the claimant (City of Salem) up to the full limit of the bond. Surety bonds are not like insurance, as the bond protects the public or the governing entity rather than the coverage holder. The principal (licensee) is ultimately responsible for the actions they take relating to their business and must reimburse any amount paid out by Jet. Think of it as a letter of credit extending to you by Jet guaranteeing to Salem you are going to manage your business lawfully.

Jet’s goal is to help you resolve the bond claim as efficiently as possible in all cases and to keep you in business.

Why Is the License Bond Required? 

This bond is a requirement to maintain an active business license with the City of Salem for select business types. The purpose of this bond is to protect the interests of the City of Salem and its public health. Should a business act fraudulently or refuse to comply with order to make recompense from damages they caused, the surety bond is a method used by Salem to guarantee protection from a third party, in this case Jet.

How Does the Application Process Work With Jet?

You need to submit the basic information on our online application process and purchase the bond online, which takes a couple of minutes. Jet takes pride in making the application process easy to complete!
PURCHASE SALEM LICENSE BOND

Jet will send the bond form to be filed with the City of Salem. If you need expedited shipping, you can choose that option prior to checkout. 

What Is the Bond Renewal Process?

If paying on annual terms, the bond renewal with Jet is very easy, simply pay the renewal premium. We send notices to renew the bond with ample time to take care of the bond renewal. 

If you are on monthly payments there is no renewal process. So long as payments are current the bond stays active.

 

Oregon City of Salem License Bond Form