Federal & Healthcare
Prescription Drug Wholesale Distributor Bond
A bond a prescription drug wholesaler must file to get or renew a state wholesale distributor permit.
- Required by
- State drug regulators, such as the Florida Department of Business and Professional Regulation
- Bond amount
- Set by whoever requires the bond. We confirm it.
What this bond guarantees
The bond names the state as beneficiary (the obligee). It secures payment of administrative penalties, fees, and costs the state imposes on the distributor. The state can claim if the distributor does not pay them within the required time.
Who needs it
- Prescription drug wholesale distributors
- Out-of-state distributors shipping into the state
- Third-party logistics providers, where the state requires it
What the underwriter looks at
- Gross annual receipts
- Business financial statements
- Owner credit
- Regulatory history
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 is the Florida bond?
Under s. 499.012, it is $100,000, or $25,000 if the distributor's gross annual receipts in the prior tax year were $10 million or less.
Can I use something other than a surety bond?
Florida accepts an irrevocable letter of credit or a deposit in a trust account or financial institution in place of the bond.
How long can the state claim after I close?
In Florida, until one year after the permit stops being valid, or 60 days after any related proceeding ends, whichever is later.