Connecticut heating fuels distributor bonds.
From $100.
A Connecticut heating fuel dealer that offers prepaid guaranteed-price plans must secure those customer prepayments — and a surety bond is one accepted way to do it under CGS § 16a-23n. The bond runs at least 50% of prepaid funds. Pricing is 0.75% of your bond amount, $100 minimum, and no credit check up to $10,000.
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How much does a Connecticut heating fuels distributor bond cost?
0.75% of the bond amount, from $100. Enter your amount in the calculator for the exact price.
Three steps. One sitting.
No underwriting queue for the standard heating-fuel bond — enter your amount, pay, and file with the DCP. Here is the whole thing:
Apply online
Your business details, the bond amount your prepaid book requires, and the effective date — that is the application.
Issued on the spot
No credit check up to $10,000. Above $10,000, a soft pull may add a short review.
File with the DCP
Submit the executed bond to the Department of Consumer Protection so you can offer prepaid guaranteed-price plans. Wet-ink originals mailed on request.
What it is and who needs it.
What the heating-fuel bond actually covers
Connecticut regulates prepaid guaranteed-price heating-fuel plans under CGS Chapter 296a. When customers pay in advance for a season’s oil or propane at a locked price, the state wants those prepayments secured so consumers aren’t left short if the dealer can’t deliver.
Under CGS § 16a-23n, a dealer offering these plans must either hold the fuel by futures/forward/physical-supply contracts or post a surety bond of not less than 50% of the total funds prepaid by consumers. The bond is the flexible option — it secures the prepaid money without tying up your inventory.
The surety obligates the dealer to fully and faithfully perform the prepaid contracts, and the bond’s issuer must notify the Commissioner of Consumer Protection within three business days if it’s ever cancelled. Size the bond to your prepaid book; pricing is variable and starts from $100, and no credit check up to $10,000.
You need this bond if you are
Claims, renewal, filing, and what sets the price.
If a claim is made
A claim comes from the party the bond protects, the obligee named on the form, when the duty the bond guarantees is not met.
The surety investigates and pays a valid claim, up to the bond amount. You then repay the surety: a surety bond is a guarantee of your performance, not insurance for you.
Renewal and term
The term is set on the carrier’s application; the premium covers the period shown there.
Renewal falls on the statutory date, June 30, in the year your term ends.
Renew before the expiry date to keep the bond in force: the license, permit or contract it backs expects continuous coverage.
How to file it
File with the DCP. Submit the executed bond to the Department of Consumer Protection so you can offer prepaid guaranteed-price plans. Wet-ink originals mailed on request.
What sets the price
The premium is 0.75% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
No credit check up to $10,000. Above that, the carrier may run a soft pull, which never affects your score.
Where a check runs, it decides approval; the rate is the same for everyone approved.
One application, issued on the spot.
Submit the application with the bond amount your prepaid book requires — the executed bond is generated instantly, ready to file with the DCP.
Start the application →Common questions.
Other Connecticut bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Heating-fuel bond, issued today.
From $100. Size it to your prepaid book and file the same day.