Connecticut Surety Bonds
Surety Bond Professionals is a family owned and operated bonding company with over 30 years of experience. Headquartered in Massachusetts, we proudly serve clients in the entire New England area and nationwide. With access to over 25 surety markets, our expert agents are ready to assist with all of your Connecticut surety bond needs.
Learn more below, or fill out our online quote form to get started.
Required Surety Bonds in Connecticut
Most of the surety bonds issued in Connecticut fall into one of three broad categories: construction and contractor bonds, license and permit bonds, and court bonds. Although there are other types of surety bonds, these are the ones that are most commonly needed.
Connecticut Construction Bonds
At Surety Bond Professionals, we have been specializing in construction surety for over 30 years. Our agents can help you to understand your bonding requirements and get you bonds at competitive rates.
Contractors who are not required to purchase a contractor license bond in Connecticut will still need to meet state and local requirements for other types of construction surety bonds—such as bid bonds, performance bonds, and payment bonds. These are typically required by state and local sponsors of public works projects.
- A bid bond guarantees that a contractor will accept the project if awarded a contract.
- A performance bond guarantees that the contractor will fulfill all contractual obligations in a lawful and ethical manner.
- A payment bond guarantees that the contractor will pay suppliers, subcontractors, and laborers according to the terms of the contract.
Connecticut License & Permit Bonds
As the name suggests, license and permit bonds are required in order to obtain or renew a license to practice certain professions or to operate certain kinds of businesses in the state of Connecticut. They help ensure that the laws governing such businesses are obeyed and that consumers and taxpayers don’t suffer any financial loss due to the unlawful or unethical actions of licensees. For example:
- Connecticut Department of Banking issues licenses to collection agencies, debt negotiators, mortgage brokers, lenders, and services, and money transmitters. A license bond is a requirement for becoming and remaining licensed in these professions.
- Department of Motor Vehicles licenses new and used motor vehicle dealers, leasing or rental companies, and repairers. Each of these licenses carries a bond requirement.
- Plumbers, electricians, HVAC professionals and certain other specialty contractors must obtain a license bond.
- Nonresident contractors (those based in another state) may be required to purchase a surety bond to guarantee payment of taxes owed to the state of Connecticut.
Connecticut Court Bonds
There are two main reasons that Connecticut courts impose a bond requirement:
- To ensure that people who lose an appeal pay any court-ordered damages, court costs, and legal fees, and
- To ensure that executors, guardians, conservators and others with fiduciary responsibilities perform their duties in compliance with applicable laws and the rules of the court
Speak with an agent today for assistance with your court bonding requirements and needs, or simply request a quote online.
How Much Do Surety Bonds Cost?
The cost of a bond depends on the required bond amount and the creditworthiness of the applicant. The surety company will consider the applicant’s credit score, financial condition, and other relevant factors in setting the premium rate. This can be as low as 1-3% for applicants with excellent/very good to good credit, or as high as 4-10% for those with very poor credit. The exact rate depends on the type of bond needed, credit, and financial situation.
At Surety Bond Professionals, we have an extensive provider network that helps us to ensure competitive rates across our book of business.
What Happens When a Claim is Filed?
When a claim is filed, the surety company will investigate to determine its validity. The surety company will then pay all claims that it determines to be valid. Note that the individual who purchased the bond is then legally obligated to reimburse the surety company.
Our experts will gladly answer any questions you may have about Connecticut surety bonds and help you obtain the bond you need. Get a quote today!