Vermont Surety Bonds
Surety Bond Professionals has been providing surety bonds in Vermont, the rest of New England, and nationwide for more than three decades. We can meet any surety needs you may have. Learn more about common types of bonds below, or request a quote now if you know what you need.
Required Surety Bonds in Vermont
Vermont is no different from other states in requiring three main categories of bonds: construction bonds, license bonds, and court bonds. Although there are a few bonds that don’t fit neatly into one of these categories, the vast majority do. We can provide many other types of bonds, so don’t hesitate to contact us with any specific needs.
Vermont Construction Bonds
In Vermont, constructions bonds, such as bid bonds, performance bonds, and payment bonds, are typically required by municipalities, not at the state level. Local governments often require surety bonds as a condition for bidding on or being awarded a public works contract. These bonds are intended to protect the municipality and taxpayers against financial loss due to the actions of a contractor. They can include but are not limited to:
- Bid bonds. A bid bond guarantees that a contractor will accept the contract if it is awarded to him. Learn more.
- Performance Bonds. A performance bond guarantees that the contractor will complete the project in its entirety, in compliance with the terms of the contract and applicable laws and regulations. Learn more.
- Payment Bonds. A payment bond guarantees that the contractor will pay suppliers, workers, and subcontractors in a timely manner, as specified in the contract. Learn more.
We specialize in construction bonding. You can rely on our experience for answers to your questions, and you can leverage are broad provider network to take advantage of competitive pricing.
Vermont License & Permit Bonds
In Vermont, relatively few businesses must be licensed at the state level. Those that do, however, may also be required to purchase a license bond as a condition of licensing. The most common business licenses required are for retailers selling liquor or tobacco, investment advisors, mortgage lenders and brokers, and motor vehicle dealers. Anyone applying for a license for the first time or renewing a license in one of these fields will need to obtain or renew a license and permit bond.
These bonds guarantee that the business will operate in a lawful and ethical manner. This protects both the state and consumers against financial loss due to the deliberate or negligent bad acts of the licensee.
Vermont Court Bonds
Vermont courts at any level can require bonds. They are most often required for:
- Appeals. Plaintiffs or defendants involved in an appeal may be required to obtain a bond in order to guarantee that any court decision ordering the return of property or payment of damages and court costs will be obeyed. Learn more.
- Fiduciary Roles. The court may require a bond to guarantee that court-appointed custodians, guardians, trustees, or executors carry out their fiduciary duties in accordance with the law and the terms of their appointment. Learn more.
Speak with one of our expert agents today about any bond a Vermont court is requiring you to obtain— or request an online quote.
How Much Do Bonds Cost?
The cost of any surety bond is calculated by multiplying the required bond amount by the premium rate the surety company assigns to the applicant. The primary factor in determining the premium rate is the applicant’s credit score, though other information may also be considered. This can include the applicant’s overall financial condition, industry experience, and other indicators of trustworthiness and financial stability. The premium rate is the percentage of the bond amount that the applicant will pay for the yearly bond premium.
The standard market rate paid by applicants with good credit is in the range of 1% to 3%. Applicants with poor credit will likely pay 5-10% of the bond amount.
What Happens When a Claim is Filed?
Filing a claim triggers an investigation to ensure that the claim is valid. If the claim is determined to be valid, the surety company will pay the claimant up to the full bond amount. The surety company will then seek reimbursement from the party that purchased the bond (the principal). The principal is ultimately responsible for paying all claims.
Take advantage of our decades of experience in the surety business. Get answers to your questions and assistance in obtaining the bond you need.