Mississippi Surety Bonds

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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 Mississippi surety bond needs.


Required Surety Bonds in Mississippi

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

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Required Surety Bonds in Mississippi

There are three broad surety bond categories: construction and contractor bonds, license and permit bonds, and court bonds.

Mississippi Construction & Contractor Bonds

Mississippi requires contractors entering into public works contracts valued in excess of $25,000 to obtain a surety bond for the full amount of the contract price. Performance bonds and payment bonds are both required under Mississippi’s version of the federal Miller Act. Certain cities and counties may also require a surety bond from contractors awarded local public works projects.

Mississippi License & Permit Bonds

Mississippi licenses certain professionals and businesses, including contractors, collection agencies, auto dealers, and mortgage lenders, at the state level. The licensing process typically involves purchasing a license and permit surety bond. Some municipalities and counties have their own licensing and bonding requirements as well.

Mississippi Court Bonds

Mississippi courts at any level of the state’s judicial system can require either the plaintiff or the defendant to purchase a surety bond when appealing a prior court decision. A bond is most commonly required in cases involving contested property or large damage awards.
The other type of Mississippi court bond—a probate bond—may be required from individuals named to manage the assets of another party, such as an executor of an estate or guardian of a minor.

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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.