Surety Bonds in Delaware
If you are required to get a surety bond in Delaware, you likely have questions. We have the answers. Learn everything you should know before signing a surety bond agreement in the quick guide below.
How Does a Surety Bond in Delaware Work?
A surety bond is a legally binding agreement designed to hold one party accountable for damages caused to another party. There are actually three parties involved:
- The principal must obtain the required surety bond in the required amount and accept liability for any claims filed against it.
- The obligee may file claims against the surety bond for compensation equal to any damages caused by the principal.
- The surety underwrites the surety bond, meaning they settle claims when the principal can't or won't. However, whenever the surety pays the obligee for a claim, the principal must pay back that same amount, including interest and fees. Liability always rests with the principal.
Types of Delaware Bonds
There are four main surety bond types:
- Commercial surety bonds are required to get some business and professional licenses.
- Contract surety bonds are required before finalizing some contracts, especially in the construction industry.
- Court bonds are required before some civil and criminal trials can proceed.
- Fidelity bonds are voluntary and protect businesses and customers from misconduct (theft, property damage etc.) caused by employees.
Who Needs a Surety Bond in Delaware?
Anyone may potentially need a surety bond in Delaware. They are common in the construction industry and a fact of life for many entrepreneurs and professionals. However, even people who don't fall into one of these categories may need a Delaware bond at some point in their life, especially if they have credit issues. It never hurts to know how to get a surety bond and where to go for help. Call on Viking Bond Service to satisfy any surety bond requirement that comes up.
How to Get a Surety Bond in Delaware
The specifics depend on the type of bond and the coverage amount. Bigger bonds require more scrutiny. For most, though, there are only a few requirements to apply for a surety bond:
- Fill out a bond application
- Give permission for a credit check
- Supply additional documents at the surety's request
The surety will quote a cost of the surety bond based on the application documents. Now just pay the quoted premium price to activate bond coverage and fulfill the bond requirement.
The Cost of Delaware Surety Bonds
Costs depend on three factors: the type of bond, the size of the bond, and credit. For most types of bonds, the cost is a small percentage of the size that gets more expensive as the bond seeker's credit worsens. We offer a special program to help more people with bad credit get approved for bonds at fair rates.
How to Renew a Surety Bond in Delaware
Contract bond terms are tied to the duration of the contract. Commercial bonds work differently, though. Since they are a condition or licensure, they need to remain active and in good standing as long as the bondholder has a license. Lapsed bond coverage could invalidate that license. That's why it's important to renew regularly (usually annually) by going through another credit check and paying an updated premium price. The surety will provide early renewal notification, but be careful to budget for the renewal cost.
Get Surety Bonds in Delaware From Viking Bond Service
Get any kind of surety bond from anywhere in Delaware through Viking Bond Service. Request a quote at any time to get multiple competitive offers within 24 hours. For more information and questions, contact us or call 1-888-2-SURETY (1-888-278-7389).
Viking can get you from bond application to bond in hand quick and easy. We work with both good and bad credit clients. Get started here.
Getting a Surety Bond is not difficult. Viking can guide you from start to finish. Learn what is involved in the bonding process.
A Performance Bond may be required to bid for, or accept a contracted job. Learn about Performance Bonds here.
Performance Bond cost can vary based on several variables. Each application has unique aspects that affect the cost. Read about how the cost is figured.
