Surety Bond Professionals is a family owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your Michigan surety bond needs.
Continue reading below to learn more about common Michigan bonding requirements, or use our online form to request a quote now.
Required Surety Bonds in Michigan
Typical Michigan bonds include (click on any for more info):
| Surety Bond | Obligee | Bond Amount | |
|---|---|---|---|
| Alcohol Bonds | Various State Entities | Varies | Apply Now |
| Appeal Bonds | Various Courts | Varies | Apply Now |
| Attachment Bonds | Various Courts | Varies | Apply Now |
| Auto Dealer Bonds | Michigan Secretary of State | $10,000 | Apply Now |
| Bid Bonds | Project Owner or GC requiring bonds | Varies | Apply Now |
| Construction Bonds | Project Owner or GC requiring bonds | Varies | Apply Now |
| Contractor License Bonds | Various State/Municipal Entities | Varies | Apply Now |
| Court Bonds | Various Courts | Varies | Apply Now |
| Cryptocurrency Bonds | Various State Entities | Varies | Apply Now |
| DMEPOS Bonds | Centers for Medicare and Medicaid Services (CMS) | $50,000 | Apply Now |
| Encroachment Bonds | Various State Highway Department | Varies | Apply Now |
| ERISA Bonds | Fund Beneficiaries | Often ~ $1,000,000 but may vary | Apply Now |
| Express Script Bonds | Express Scripts (required on a federal level) | $500,000 | Apply Now |
| Fidelity Bonds | Employer | Varies | Apply Now |
| Freight Broker Bonds (BMC-84 Bonds) | Federal Motor Carrier Safety Administration (FMCSA) | $75,000 | Apply Now |
| Health Club Bonds | The State in which the Health Club operates | $50,000 | Apply Now |
| Janitorial/Cleaning Service Bonds | Varies | Varies | Apply Now |
| License & Permit Bonds | Varies | Varies | Apply Now |
| Lost Instrument Bonds | Typically runs to the Transfer Agent | Varies | Apply Now |
| Lottery Bonds | Various Lottery Commissions | Varies | Apply Now |
| Maintenance Bonds | Project Owner or Municipality | Varies | Apply Now |
| Marijuana Bonds | Various State Entities | Varies | Apply Now |
| Mechanic's Lien Bonds | Typically the Local/State Registry of Deeds | Varies | Apply Now |
| Money Transmitter Bonds | Various State Entities | Varies by State | Apply Now |
| Mortgage Broker Bonds | Bank Commissioner, Banking Dept. | $50,000 | Apply Now |
| Notary Public Bonds | Michigan Secretary of State | $10,000 | Apply Now |
| Paid Family Medical Leave (PFML) Bonds | Various State Entities | Varies | Apply Now |
| Performance & Payment Bonds | Project Owner or GC requiring bonds | Varies | Apply Now |
| Probate & Fiduciary Bonds | Various Courts | Varies | Apply Now |
| Reclamation Bonds | Various Government Entities | Varies | Apply Now |
| Solar Decommissioning Bonds | Typically Town/City/State | Varies | Apply Now |
| Subdivision/Site Improvement Bonds | Various Municipal Entities | Varies | Apply Now |
| Supply Bonds | Project Owner or GC requiring bonds | Varies | Apply Now |
| Title Bonds | MI Dept. of State – Vehicle Title Division | Varies | Apply Now |
| Tobacco Bonds | Various State Entities | Varies | Apply Now |
| Utility Bonds | Utility Company | Varies | Apply Now |
Don’t see the bond you need listed? Get in touch and let our experts help!
Required Surety Bonds in Michigan
There are three broad categories of surety bonds in Michigan: license bonds, contract bonds, and court bonds.
Michigan License Bonds
License bonds are often required at the state or local level (or both) as a condition for obtaining a license to operate a business or practice a profession. Michigan’s Licensing and Regulatory Affairs Department (LARA) and its various bureaus and agencies issue professional and business licenses at the state level.
For example, general contractors working on projects valued at over $600 must obtain either a residential builder’s license or an alteration contractor’s license from LARA, which requires the purchase of a surety bond.
Some municipalities also require bonding for businesses and professionals operating within their jurisdiction.
Michigan Construction & Contractor Bonds
Both the state of Michigan and certain municipalities require contractors to purchase specific types of contractor bonds—including bid bonds, performance bonds, payment bonds, and others—before being awarded a contract for a public works project.
Michigan Court Bonds
Michigan court bonds fall into two main categories: appeal bonds and probate bonds. Appeal bonds may be required from parties appealing a court decision when contested assets or sizable damage awards are involved. Probate bonds are required for people serving in a fiduciary capacity, such as an executor of an estate, guardian of a minor, or custodian of an adult.
Apply Now
Our experienced professionals will gladly answer any questions you may have about Michigan 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.