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Surety Bonds in Louisiana

The team at Viking Bond Service is here to help with all of your Louisiana surety bond needs. We have over 15 years of experience helping companies and individuals get the bond they need to comply with legal requirements and keep their businesses moving forward. We make the bonding process quick and hassle-free.

What is a Louisiana Surety Bond?

Louisiana surety bonds are risk-management tools that protect the state government and the public from fraud and incompetence in various situations. The government, business entities, and individuals may choose to require surety bonds to limit their loss exposure. For instance, specific parishes require contractors to be bonded to protect the project holder from loss in cases of fraud or shoddy workmanship. Similarly, auto dealers must obtain auto dealer surety bonds to become licensed.

Surety bonds in Louisiana provide a financial incentive for bonded people to abide by all the laws and regulations governing their businesses. And the bond provides a mechanism for awarding monetary damages if the bond is violated.

How Does a Surety Bond in Louisiana Work?

There are many different surety bond types, but they all serve the same essential purpose: to make one party financially liable for misconduct that causes damages to another party. Surety bond agreements always involve three parties:

• Principal – The person required to get a bond and obligated to pay for all valid claims.
• Obligee – The person, business, or government agency that requires the bond.
• Surety – The company that issues and underwrites the bond.

Surety bonds in Louisiana protect individuals, businesses, government agencies, or the public at large, depending upon the bond. If someone believes a bondholder has harmed them by violating the conditions of the bond, they can file a claim against the bond. The surety is obligated to investigate all claims thoroughly. If they find the claim has merit, the surety pays the damages up to the total bond value. However, they will dismiss any claim without merit.

The principal is financially responsible for all claims paid by the surety.

Types of Surety Bonds in Louisiana

There are many types of surety bonds in Louisiana, but they generally fall into three main categories. These categories are:

• License and Permit Bonds - These bonds are required as part of business license applications in the state. Mortgage brokers, and shops selling liquor all require license and permit bonds.
• Contract Bonds - These bonds are a simple way of providing parties involved in a construction contract with financial backup. Contract or construction bonds encompass bid bonds, payment bonds, performance bonds, and maintenance bonds.
• Court Bonds - Court bonds may be required before a civil or criminal trial proceeds. This type of Louisiana surety bond requires the principal to abide by the court's ruling. The judge will most likely require a court bond when sensitive financial matters are at stake.

Who Needs a Surety Bond in Louisiana?

Surety bonds are more common than you might think. Many people need one to obtain a license to open a business or start a professional career. Everyone from motor vehicle dealers to cosmetologists may need a surety bond. But private individuals may require a surety bond in Louisiana, too. Perhaps you'll need a Louisiana utility bond to activate gas, water, or electric service. Or you may lose your car title and need a title bond to sell the vehicle. Rely on Viking Bond Service to provide the bond you need and the service you want.

How Much Does a Surety Bond in Louisiana Cost?

The cost of surety bonds in Louisiana is determined by the bond's value and the principal's credit score. The obligee determines the size of the bond required. Bonds may range from a few hundred dollars up to several million. Typically, the surety bond cost is a tiny fraction of the bond's value. The range is usually 1-5%, so the premium on a $25,000 bond runs from $250 to $1,250. Whether you pay a higher or lower percentage is based on your credit score. Your credit history is the best guide the surety has to estimate how much of a risk any given principal poses.

Louisiana Surety Bond Requirements: Can I Get One With a Bad Credit?

Surety bond companies in Louisiana look at your credit score to judge how likely you are to repay the debt caused by a paid bond claim. Many will refuse to bond principals with bad credit. But at Viking Bond Service, we recognize that bad credit isn't a person's sole defying attribute. We want to work with you to help you turn the page. The Viking Bond Service Bad Credit Surety Bond Program is designed to help you get bonded while paying as low a rate as possible, despite your credit score.

How Can I Get a Surety Bond in Louisiana?

Viking Bond Service makes it easy to find an affordable surety bond in Louisiana. Our streamlined bonding process begins with you completing our online application. Next, we'll run a credit check and ask for additional information if needed. Then, we will get you a competitive quote ASAP. Once you pay the premium, you're bonded, and we send you the documentation.

Do You Need to Renew a Surety Bond in Louisiana?

Depending upon the type of Louisiana surety bond you need and the reason for it, you may need to renew your bond annually. Some bonds won't need to be renewed, and some have shorter or longer durations. When you renew your bond, we rerun your credit score and adjust the premium accordingly. Improving your credit can potentially lower the cost of your bond renewals.

Get Your Free Louisiana Surety Bond Quote Today

Contact the friendly licensed bond agents at Viking Bond Service today for a fast and efficient way to get the Louisiana surety bond you need. You can request a quote at your convenience – we answer most requests in under 24 hours! You can also get quality information straight from our team of bond experts – contact us online or call us toll-free at 1-888-2-SURETY (1-888-278-7389).