Surety Bond Encyclopedia

Fireworks Display Bond - Township of Bethel, PA in Pennsylvania

Brief Summary

Most display companies show up with a $1,000,000 insurance certificate and assume the paperwork is done. In Bethel the township also asks for a fireworks display bond before it grants permission for the show. It is a quick filing. You pay a premium instead of posting cash, and the bond is usually issued the same day.

Pennsylvania leaves display fireworks permits to the governing body of the municipality where the show will happen, under 3 Pa.C.S. 1102(b). The Township of Bethel requires the permittee to post a fireworks display bond naming the township as obligee. The bond guarantees the display is conducted under the permit and township rules, and that the township is made whole for losses caused by a failure to do so.

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How to Apply for a Fireworks Display Bond:

Confirm with the township where the display will be held the bond amount, obligee name and any required form.
Have the permittee's legal name exactly as it will appear on the fireworks permit application.
Display date, rain date and location for the bond and the permit.
Owner name, home address and Social Security number for the credit review.
Complete the bond application and review the quoted premium.
Pay the premium and file the executed bond with the permit application and insurance certificate.

Detailed Information About the Pennsylvania Fireworks Display Bond:

Who grants the permit

Pennsylvania's fireworks law now sits in Chapter 11 of Title 3 of the Pennsylvania Consolidated Statutes, added by Act 74 of 2022, which repealed the old fireworks article of the Tax Reform Code of 1971. Under section 1102(b), permission for a display is given by the governing body of the municipality under reasonable rules and regulations for displays held within the municipality. After permission is granted, purchase, possession and use of display fireworks is lawful only for the use outlined in the permit. Permits are not transferable. The State Police fireworks FAQ puts it plainly: display fireworks are only to be used by professionals with a permit from the municipality where the display will take place.

Insurance does not replace the bond

Section 1102(d) requires the municipality to make the permittee carry insurance of not less than $1,000,000 for damages to a person or property caused by the display. That policy pays third party injury and property claims. The display bond is a separate instrument posted with the township. Having one does not satisfy the other.

Rules the display has to meet

Section 1102(c) requires every display to be handled by a competent operator at least 21 years of age who shows evidence of fireworks handling and safety training. The display must also be located and fired so that, in the opinion of the fire chief or other officer the township designates, after inspection, it is not hazardous to property and does not endanger anyone. Section 1102(a) bars igniting display fireworks within 300 feet of certain facilities. If weather or other circumstances outside the permittee's control cancel the show, section 1102(e) lets the municipality extend the permit to a new date.

What the bond guarantees

The surety promises the Township of Bethel that the permittee will conduct the display under the terms of its permit and the township's rules. If it does not and the township suffers a loss, the township can claim against the bond. The surety pays valid claims up to the bond amount and the permittee must repay the surety.

How premium is set

The premium is set by the surety after reviewing the applicant's credit and display history, and the bond amount the township requires. The bond amount is the surety's limit, not what you pay.

Before you file

Pennsylvania has more than one Bethel Township. Confirm the bond amount, the obligee name, the bond form and the application timeline with the township where the display will be held before the bond is issued.

Eligibility and Requirements for a Pennsylvania Fireworks Display Bond:

A permit from the Township of Bethel governing body under 3 Pa.C.S. 1102(b).
Insurance of not less than $1,000,000 under 3 Pa.C.S. 1102(d), in addition to the bond.
A competent operator at least 21 years of age with evidence of fireworks handling and safety training.
Inspection and approval of the site by the fire chief or other officer the township designates.
Township of Bethel named as obligee on the bond.

Pennsylvania Fireworks Display Bond FAQs:

We carry $1,000,000 in liability insurance. Do we still need the bond?

Yes. Section 1102(d) of Title 3 requires the insurance. The fireworks display bond is a separate filing the township asks for as part of granting the permit. One does not replace the other.

Who issues the display permit?

The governing body of the municipality where the display takes place, under 3 Pa.C.S. 1102(b). Permits are not transferable and cover only the use outlined in the permit.

What if the show is rained out?

Section 1102(e) lets the municipality extend the permit to a new date for displays canceled due to unfavorable weather or other circumstances beyond the permittee's control. Ask the surety to confirm the bond covers the new date.

Who can fire the display?

A competent operator at least 21 years of age who demonstrates evidence of fireworks handling and safety training, under section 1102(c).

How much does the bond cost?

You pay a premium, not the full bond amount. The surety sets it after reviewing the applicant's credit and history. Apply to see the quoted price.