Massachusetts Surety Bonds
Surety Bond Professionals is a family owned and operated bonding company 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.
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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.
How Much Does A Bond Cost?
The state agency or other entity requiring a bond establishes the bond amount, and the surety company determines the premium rate. The premium rate is based largely on the applicant’s credit rating. The better the applicant’s credit and financial condition, the lower the premium rate, typically in the range of 1% to 3% for applicants with good credit. Applicants with poor credit will pay a higher premium, up to 5-10% in some cases, but most will still be able to get bonded.
What Happens When a Claim is Filed?
In the event of a claim, the surety company will investigate to determine its validity before paying it. The bonded party, known as the principle, must then reimburse the surety company.
Contact us for answers to your Massachusetts surety bond questions, or apply online today.