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Surety Bonds in Michigan

Surety Bond Michigan

Viking Bond Service offers fast, affordable, and friendly service to help you find the Michigan surety bonds you need. Our team has been helping Michigan business owners find surety bonds for many years, making us a top choice for all your bond needs. We understand how important it is for your business to get your state-required bond at an affordable price, which is why we offer expert services for all types of bonds.

What is a Michigan Surety Bond?

Michigan surety bonds are risk-management tools that protect individuals, companies, government agencies, or the public. Surety bonds create a financial incentive for bonded parties to abide by all the laws and regulations governing their bonded actions. For instance, Michigan contractor bonds ensure contractors fulfill contracts up to industry standards and comply with all regulations. This protects the project owner, who may have millions of dollars invested. It also protects the public, who will rely on the building's construction.

When the terms of the surety bond are breached, the bond provides a mechanism for forcing the bondholder to pay the damages.

How Does a Surety Bond in Michigan Work?

Like any type of surety bond, Michigan surety bonds are legal contracts between three essential parties:

  • The Principal is the bonded individual or company.
  • The Obligee is the individual, business, or government agency that requires the bond
  • The Surety is the insurance company underwriting the bond.

When someone believes a bonded principal has violated the bond, they may file a claim against it to recover their damages. The surety investigates the claim. All valid claims are paid promptly, up to the bond's total value. However, any meritless claim will be dismissed.

When the surety settles, however, the principal must pay back that debt – plus interest and fees – to the surety ASAP. Failure to repay will result in loss of bond coverage, possible collections, and potential legal action.

Types of Surety Bonds in Michigan

Surety bonds in Michigan come in many forms, but there are three primary categories:

  • License and Permit Bonds - Many businesses require that you obtain a surety bond to get your license or permit to do business. In Michigan, these include auto dealer bonds, mortgage broker bonds, and private school bonds, to name a few.
  • Contract Bonds - Contract bonds are commonly used in the construction industry to ensure that projects are completed. There are four common types of Michigan contract bonds: bid bonds, performance bonds, maintenance bonds, and payment bonds.
  • Court Bonds - A judge imposes these requirements before the court will proceed with some civil or criminal trials. Court bonds are common in cases where valuable property or sensitive financial matters are at stake.

Viking Bond Service agents are experts in all common Michigan surety bonds.

Who Needs a Surety Bond in Michigan?

Some surety bonds in Michigan are required for business. For example, contractors, motor vehicle dealers, and some professionals like mortgage brokers know they will need a bond to get the licenses required in Michigan. But sometimes, private individuals need bonding, too. For instance, consumers may use a utility surety bond instead of a cash deposit to start utility service. Viking Bond Service is your surety partner for whatever type of bonds you need.

How Much Does a Surety Bond in Michigan Cost?

The surety bond in Michigan cost is determined by the bond value and the principal's credit rating. The obligee decides on the bond value they require. It may range from $100 to several million. But the surety premium is just a tiny fraction of the bond value, typically 1-5%. So, the cost of a surety bond for $50,000 could range between $500 and $2500.

The surety uses your credit rating to determine the percentage they will ask you to pay. Those with sterling credit pay a lower fee than those with a troubled credit history.

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

Your credit history is the best guide for a surety to estimate how much risk is associated with bonding you. Some Michigan surety bond companies won't even work with you if you have bad credit. But Viking Bond Service recognizes that poor credit may reflect a period of poor health or other unfortunate circumstances. We don't let a poor credit history limit your future. Our Bad Credit Surety Bond Program works with you to help get you bonded at the lowest possible rate, regardless of your credit score.

How Can I Get a Surety Bond in Michigan?

At Viking Bond Service, we make getting a Michigan surety bond quick and hassle-free. Simply complete our online application. Next, we will run your credit score and ask for additional documents if needed. We then give you a competitive quote. Once you pay the premium — you're bonded! We send you the verification, and you're all set. You can get bonded in minutes.

Do You Need to Renew a Surety Bond in Michigan?

Although some surety bonds in Michigan are for one-time use, most are active for 12 months. To maintain the bond, it must be renewed. That involves a credit check, which could adjust the premium price up or down depending on how credit standing has changed. We will notify you when it is time to renew your bond.

Get Your Free Michigan Surety Bond Quote Today

The team at Viking Bond Service will help you secure the Michigan surety bond at the lowest possible price. We're here to help with all of your Michigan surety bond needs. Request a quote for whatever bond you need 24 hours a day. Our bond team is also here to answer your questions and provide whatever information or assistance you need. Contact us online or call us toll-free at 1-888-2-SURETY (1-888-278-7389).

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