Surety Bonds in Maine
Lots of people need surety bonds in Maine for lots of different reasons. If that includes you, learn all the basics of bonding in the helpful guide below.
How Does a Surety Bond in Maine Work?
There are many different surety bond types ranging from Maine motor vehicle dealer bonds to Maine contractor license bonds. But all types have the same purpose – to make one party liable for damages caused to another. All surety bond agreements involve three parties:
- The Principal – The party that gets the bond and has liability for claims filed against it by the obligee.
- The Obligee – The party with the right to file claims against the bond for damages caused by the principal.
- The Surety – The party that guarantees payment to the obligee when the principal refuses to pay for a valid claim. The surety will pay the claim in full, after which the principal must repay that amount to the surety with interest and fees added on.
Types of Surety Bonds in Maine
Most Maine surety bonds fit into one of these categories:
- Commercial Bonds – Surety bonds required for a professional or business license.
- Contract Bonds – Surety bonds required as a condition of a contract (very common in the construction industry).
- Court Bonds – Surety bonds required by a judge before proceeding with certain criminal or civil trials.
- Fidelity Bonds – Surety bonds a business can choose to get to protect against damages related to employee misconduct (theft, property damage etc.).
Who Needs a Surety Bond in Maine?
Someone may need a Maine surety bond before opening a business or starting a new career. For contractors and construction companies, getting surety bonds is a repeated requirement - one job may involve multiple bonds. Surety bond requirements may be predictable, but they can also arise unexpectedly, even for people who never thought they would need a surety bond. Use Viking Bond service to fulfill any Maine surety bond requirement.
How to Get Surety Bonds in Maine
Getting a surety bond starts with a simple application process:
- Complete a basic bond application.
- Undergo a credit check.
- Supply additional documents as necessary (financial statements, bond requirements, etc.).
The surety will then quote the cost of the surety bond based on the bond seeker's application materials. Bond coverage starts immediately once the premium is paid.
The Cost of Surety Bonds in Maine
You should expect to pay a small percentage of the bond's coverage amount. People with stellar credit will pay a lower amount, whereas those with challenged credit will pay more. Take advantage of a special program from Viking Bond Service to get competitive offers in spite of credit issues.
Do You Need to Renew Surety Bonds in Maine?
A principal required to have a bond longer than the coverage period lasts will need to renew that coverage. Commercial bonds in particular require renewal – usually annually – to keep a commercial license valid. The surety will run a new credit check at renewal time, then adjust the premium up or down based on credit changes. Coverage renews for another term after the premium is paid.
Viking Bond Service for Surety Bonds in Maine
Request a quote for whatever kind of Maine surety bond you need. For more information on bonds, contact us online or call 1-888-2-SURETY (1-888-278-7389).
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