All wholesalers of prescription drugs in Arizona have numerous laws they must adhere to when acquiring and maintaining their licenses. One of these regulations is to provide evidence of having a surety bond or line of credit for $100,000 at the time they apply for their license and whenever the license is renewed. A surety bond is a form of insurance paid for by a business that protects the organization requiring the company hold the bond. With a prescription drug wholesaler Bond in Arizona, residents and the government are protected against any legal issues that may arise due to how the wholesaler conducts their business.
Prescription drug wholesalers will need to contact a bond service to obtain this type of protection. The surety service uses the license bond to protect the assets of the wholesaler. They ensure that all legitimate claims against the company are paid or otherwise resolved and repay any legal expenses or other penalties caused by the bond holder and suffered by the government agency that required the bond.
Surety bonds differ from one company to the next, and it is important for every wholesaler to understand what the license bond they receive guarantees for coverage. There are no surety bonds that will cover all of the insurance needs of any company. By operating as Prescription Drug Wholesaler Bond in Arizona, business owners must understand all of their responsibilities under the law and have adequate commercial insurance to cover all of their potential losses. This includes maintaining policies for product liability and recalls, having adequate commercial coverage for property and equipment, and covering all employees with disability coverage among many others.
Some surety bonds obtained in other states are legal for use in Arizona, but that is not always the case. It is necessary to talk with a bond expert to make certain any bonds currently held are adequate. Failing to do so could result in a denial of the application with the state and a delay in conducting business. Contact Southwest Bond Services for more information about receiving and maintaining a surety bond before applying for a drug wholesale permit to make certain the company meets all requirements.