Massachusetts Surety Bonds

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Surety Bond Professionals is a family owned and operated bonding agency with over 30 years of experience. Headquartered in Natick, MA, our expert agents are ready to assist with all of your Massachusetts surety bond needs.

Continue reading below to learn more about common Massachusetts bonding requirements, or use our online form to request a quote now.


Required Surety Bonds in Massachusetts

Typical Massachusetts bonds include (click on any for more info):

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Required Surety Bonds in Massachusetts

The three main categories of surety bonds required in Massachusetts are contractor and construction bonds, license and permit bonds, and court bonds. There are other types of bonds, but these are the ones that are most commonly needed.

Massachusetts Construction Bond Requirements

Contractors are generally required to obtain a contractor license bond as part of the process of becoming licensed by the Massachusetts State Board of Building Regulations and Standards. Contractors are also typically required to purchase other types of construction surety bonds in order to bid, win, or work on public works projects.
Required bonds for your project may include bid bonds, performance and payment bonds, supply bonds, and others. In Massachusetts, these bond requirements are established by various municipalities rather than at the state level. The bonds guarantee that the contractor will comply with all applicable rules, regulations, and standards and will fulfill all of their contractual obligations.
At Surety Bond Professionals, construction surety is our specialty. Our knowledgeable agents are on standby to help with all of your bonding needs.

Massachusetts License & Permit Bonds

License bonds are required as a condition for obtaining or renewing a license to operate certain kinds of businesses in the state of Massachusetts. They protect state agencies, municipalities and consumers from unethical or unlawful acts of licensed professionals. These bonds are the purchaser’s pledge to operate in a lawful and ethical manner.
Certain bonds are mandated at the state level by the agencies that issue licenses to operate specific types of businesses, such as:

  • Private occupational schools that train drivers, cosmetologists, or real estate agents and brokers
  • Mortgage brokers, lenders, and originators, money transmitters, debt collectors, etc.
  • Health clubs, employment agencies, liquor stores, auto repair shops, auctioneers, public warehouses, and more
  • Home improvement contractors, construction supervisors, and specialty contractors such as electricians and plumbers

Massachusetts Court Bonds

Court bonds are typically required as a way to ensure that people appealing cases at any level of the Massachusetts court system pay court-ordered damages, court costs, and legal fees in the event that they lose their appeal. Courts may also require bonds from estate executors, guardians, or conservators to ensure that they fulfill their duties honestly and ethically, in accordance with the law and the rules of the court.

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Our experienced professionals will gladly answer any questions you may have about Massachusetts surety bonds to help you get the bonds you need. Request a quote today!

Frequently Asked Questions

There are three parties to every surety bond agreement, which is a legally binding contract:

  • The “obligee” is the state or local agency requiring the surety bond.
  • The “principal” is the party required to purchase the bond.
  • The “surety” is the company underwriting and issuing the bond.
  • The obligee sets the required amount of the bond, which is the maximum amount that will be paid out on a claim. The obligee also spells out the conduct required of the principal in order to avoid claims against the surety bond.

Any party who suffers a financial loss because the principal has violated the terms of the bond has the right to file a claim against the bond. The principal is solely responsible for paying all valid claims.

However, the surety will often pay a claim and wait to be reimbursed by the principal. This ensures timely settlement of the claim and gives the principal some time to gather the necessary funds.

What the principal in a bond agreement actually pays for a surety bond is a small percentage of the required bond amount established by the obligee. That percentage, known as the premium rate, is determined by the surety company based on the applicant’s credit score and other indicators of the likelihood of claims being filed against the bond. Those with good credit can expect a rate of 1-3%. Those with poorer credit may pay a higher premium.
No claim against a bond will be paid until the surety company has investigated and determined that it is valid. After making payment to a claimant, the surety company will demand reimbursement from the principal.