License & Permit
Boat Dealer Bond
A license bond some states require from businesses that buy, sell, or trade boats, guaranteeing they follow titling, tax, and dealer laws.
- Required by
- State natural resources, motor vehicle, or revenue agencies (for example, Maryland DNR)
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond promises the state, and customers harmed by the dealer, that the dealer will follow state boat dealer law, including collecting and forwarding taxes and title fees. If the dealer fails to do so, the state or a customer can claim on the bond. The dealer must repay the surety for any claim paid.
Who needs it
- New and used boat dealers
- Personal watercraft dealers
- Businesses selling more than a handful of boats a year
What the underwriter looks at
- Owner's personal credit
- Annual sales volume
- Dealer financial statements
- Years in business
Requirements vary by state and by who asks for the bond. Send us the request you received and we will confirm exactly what it calls for.
Common questions
How much bond do I need?
It depends on the state. Maryland requires $20,000 in the first license year and then sets the amount by your prior 12 months of sales.
Is this the same as a yacht broker bond?
No. A yacht broker arranges sales for others and is licensed separately in some states, such as Florida.