Oregon 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 Oregon surety bond needs.

Required Surety Bonds in Oregon

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

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Required Surety Bonds in Oregon

There are three broad categories of surety bonds in Oregon and across the United States: license and permit bonds, construction and contract bonds, and court bonds.

Oregon License & Permit Bonds

Oregon licenses and regulates certain types of businesses and occupations at the state level, such as construction contractors, collection agencies, motor vehicle dealers, and so on. Most often, the state requires a surety bond as a condition for licensing. Some municipalities also require a surety bond as a prerequisite for obtaining a license or permit to do business within their jurisdiction.

Oregon Construction & Contractor Bonds

Both state and local sponsors of certain public works projects require contractors to obtain a set of contractor surety bonds. These typically include a bid bond, performance bond, payment bond, maintenance bond, and potentially others.

Oregon Court Bonds

There are two types of Oregon court bonds: appeal bonds and probate bonds. Any party appealing a court ruling may be required to buy an appeal bond, especially when contested property or potential damages are at stake. A probate bond is typically required of anyone appointed to protect others’ interests and manage their assets, such as an executor of an estate, guardian of a minor, or custodian of an adult.

Get A Quote

If you need to purchase an Oregon surety bond, call us today or request an online quote for the bond you need.

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.