Maine Surety Bonds
Surety Bond Professionals has been in the surety business for more than three decades. Our highly professional agents will be able to help you with all of your surety bond needs in Maine. Continue reading about common surety bonds below, or request a convenient online quote.
Maine Surety Bond Requirements
In Maine, as in most states, the three main categories of bonds are construction bonds, license and permit bonds, and court bonds. There are certainly other types of bonds, but these are the three most common types. Feel free to reach out to us with specific requests.
Maine Construction Bonds
In Maine, construction bonds—predominantly bid bonds, performance bonds, and payment bonds—are primarily required by municipalities rather than by a state agency. They are typically required in order for a contractor to be considered for public works projects and may also be required by some private project owners.
- A bid bond guarantees that the contractor will accept the job if chosen as the winning bidder. Learn more
- A performance bond, also known as a contract bond, guarantees that the contractor will complete the project, abiding by all contract terms and applicable laws and regulations. Learn more
- A payment bond guarantees the contractor’s timely payment of suppliers, subcontractors, and workers, according to the terms of the contract. Learn more
We welcome your questions about the construction bonds that contractors working in Maine may need to obtain.
Maine License & Permit Bonds
Maine’s Department of Professional and Financial Regulation oversees the agencies and boards that issue licenses needed to practice certain professions and operate certain types of businesses in the state. In many cases, a license and permit bond is required in order to obtain a license. This provides financial protection for the state and for consumers against losses incurred as a result of the unethical or unlawful practices of a bonded business or professional.
For example, the Office of Consumer Credit Regulation requires license and permit bonds for debt collectors, debt management firms, loan brokers, and real estate property preservation services. Perhaps the most common license and permit bond is the one required by the Bureau of Motor Vehicles for motor vehicle dealers.
If you know the bond you need, apply today. If you have any questions, feel free to contact us for more information.
Maine Court Bonds
Courts in Maine require surety bonds from:
- People involved in appeals, to ensure that the losing party returns disputed property or pays court-ordered damages and legal fees. Learn more
- Court-appointed guardians, custodians, estate executors, bankruptcy trustees and others with the authority to manage the assets of another—to guarantee that these fiduciaries carry out their duties in accordance with the law and the rules of Maine courts. Learn more
How Much Does A Bond Cost?
The party requiring a surety bond (the obligee) sets the bond amount, and the company issuing the bond (the surety) sets the premium rate that the bond applicant (the principal) will pay. The premium rate is based primarily on the principal’s credit score and other factors that help the surety determine the likelihood of claims being filed against the bond.
An applicant with good credit, in sound financial condition, will usually pay somewhere between 0.5-2.5% of the bond amount as the annual premium. Those with poor credit may pay a higher premium rate.
What Happens When a Claim is Filed?
The surety will evaluate all claims and pay any that are found to be valid. But it’s the principal’s responsibility to reimburse the surety for the amount paid to the claimant.
Contact us to get the Maine surety bonds you need, or simply fill out our convenient online application.