Montana 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 Montana surety bond needs.


Required Surety Bonds in Montana

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

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Required Surety Bonds in Montana

All Montana surety bonds can be categorized as one of the following: construction and contractor bonds, license and permit bonds, or court bonds.

Montana Construction & Contractor Bonds

Montana’s “Little Miller Act” requires contractors to purchase both performance and payment surety bonds in order to serve as a prime contractor on public works contracts valued, with few exceptions, in excess of $50,000. There may be similar requirements for local public works projects.

Montana License & Permit Bonds

Montana maintains about 40 different programs and boards that issue a wide variety of occupational and business licenses. In many cases, the licensing process requires the purchase of a license or permit surety bond. Additionally, some jurisdictions may have their own local licensing and bonding requirements.

Montana Court Bonds

Montana’s courts, at all levels, can require people with business before the court to purchase a surety bond. Specifically, anyone appealing a court decision may need an appeal bond, especially when there is contested property or a large monetary award at stake.
The other type of Montana court bond is a probate bond. A probate bond may be required from a person who has been appointed to manage another party’s assets, such as the executor of an estate or the 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.