Covington Electric System deposit bonds.
From $100.
Covington Electric System (CES) can require a security deposit on an electric account — the exact figure is set by CES at application, based on the account’s billing history and expected usage. A surety bond satisfies that requirement without tying up cash; premiums run 2% of the bond amount, with a $100 minimum.
Trusted by industry leaders
How much does a Covington Electric System deposit bond cost?
2% 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 utility deposit bond — enter your amount, pay, and deliver it to CES. Here is the whole thing:
Apply online
Your account details, the deposit amount CES required, and the effective date — that is the application.
Issued
The executed bond is generated as soon as you pay. No credit check up to $15,000.
Deliver to CES
Submit the executed bond to Covington Electric System in place of your cash deposit. Wet-ink originals mailed on request.
What it is and who needs it.
What the utility deposit bond actually does
Covington Electric System distributes electric service to the city of Covington and surrounding Tipton County. CES can require a security deposit on an account, with the figure set by CES based on the account’s billing history and expected usage. Rather than leaving cash on deposit, you can post a utility deposit surety bond for the same amount — CES is protected, and your money stays in your business.
It is a three-party arrangement: you (the principal), the surety carrier, and Covington Electric System (the obligee). If the account goes unpaid, CES can recover the outstanding balance against the bond, up to the deposit amount it set.
It is not insurance for you — if the surety pays a claim, you repay the surety. CES sets the exact deposit figure per applicant; there is no single published number that applies to every account. We issue the amount CES names, priced at 2% of the bond amount with a $100 minimum.
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 premium covers a one-year term from the effective date you choose.
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
Deliver to CES. Submit the executed bond to Covington Electric System in place of your cash deposit. Wet-ink originals mailed on request.
What sets the price
The premium is 2% of the bond amount, $100 minimum: the amount the obligee sets moves the price, not your business profile.
No credit check up to $15,000. 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 instantly.
Submit the application with the deposit amount CES set — the executed bond is generated as soon as you pay, ready to deliver.
Start the application →Common questions.
Other Tennessee bonds.
Price and requirements checked on the carrier’s application, . Page updated .
Bond your deposit, keep your cash.
Premiums at 2% of the bond amount, $100 minimum. Enter CES’s deposit figure and deliver the same day.