Rhode Island Surety Bonds
Surety Bond Professionals has been meeting the bonding needs of clients in Rhode Island and nationwide for more than 30 years. Our experienced and knowledgeable agents are ready to help with any Rhode Island surety bonds you may need.
Continue reading to learn more about common Rhode Island bonding requirements, or use our online form to request a quote now.
Required Surety Bonds in Rhode Island
Rhode Island Construction Bonds
At Surety Bond Professionals, construction surety is our specialty. You can rely on our surety bond experts to answer your questions and get you competitive prices on the bonds you need.
- The Miller Act requires surety bonds in order for contractors to bid or work on federal public works projects of $100,000 or more.
- Rhode Island has its own “Little Miller Act” that requires contractors to post both a performance bond and a payment bond in order to take on state-funded projects in excess of $50,000. The required bond amount in such cases is between 50% and 100% of the contract value.
- Municipalities and private project owners sometimes require construction bonds for large contracts. Check your contract to confirm all bonding requirements.
Common Bond Types
- Performance bonds guarantee that the contractor will complete the project in accordance with the contract and all applicable laws and regulations. Learn more.
- Payment bonds guarantee that the contractor will pay all suppliers, subcontractors, and workers according to the terms of the contract. Learn more.
- Bid bonds ensure that the low bidder on a construction bid will move forward with the contract. Learn more.
There are other types of construction bonds that may be required or recommended for your project. For assistance, contact our knowledgeable agents today. If you know your bonding needs and are ready to request a quote, you can do so through our convenient online form:
Rhode Island License & Permit Bonds
In Rhode Island, a number of businesses are licensed by the Department of Business Regulations. These include:
- Alcohol-related businesses (retailers, wholesalers, warehouses)
- Businesses that sell and service mortgages and other loans (loan brokers, mortgage brokers, mortgage lenders, and third-party loan servicers)
These and other businesses licensed at the state level may be required to purchase a license and permit bond to guaranty that they will operate lawfully and ethically. The bond provides financial protection for the state and for consumers. Note that some municipalities have their own license and bonding requirements.
Rhode Island Court Bonds
In Rhode Island there are two main types of court bonds:
- Appeal bonds may be required of a plaintiff or defendant to ensure the court-ordered return of property or the payment of damages, court costs, or legal fees following an unsuccessful appeal or other adverse ruling.
- Fiduciary bonds guarantee that court-appointed executors, guardians, or others with fiduciary responsibilities carry out their duties in compliance with the law and the rules of the court.
Speak with one of our experts today about your need for a court bond, or request an online quote.
How Much Do Surety Bonds Cost?
The cost of a given bond depends on the required amount of the bond and the premium rate assigned to an applicant. The premium rate determines what percentage of the bond amount an applicant will pay as the annual premium. This rate is based on the surety company’s assessment of the applicant’s creditworthiness and the likelihood of claims being filed against the bond.
Applicants with good credit typically pay a standard market rate of 1-3%. Applicants with poorer credit may pay a premium between 5-10% of the bond amount.
We work with an extensive network of providers, which enables us to offer competitive rates on whatever type of bond you may need.
What Happens When a Claim is Filed?
When a claim is filed against a bond, the surety company investigates its validity before paying it. Sometimes a claim is the result of a misunderstanding that can be cleared up rather easily. If a claim is found to be legitimate, however, the surety company will pay it and then obtain reimbursement from the company that purchased the bond.
Our experienced professionals will gladly answer any questions you may have about Rhode Island surety bonds to help you get the bonds you need. Request a quote today!