Surety Bonds in Mississippi
If you need to meet Mississippi surety bond requirements, you probably have a few questions. It's important to get good answers so you can meet those requirements quickly. Here are the basics you need to know.
How Do Surety Bonds in Mississippi Work?
All different surety bond types make the principal (the bond holder) financially liable to the obligee (the bond beneficiary). If the principal does something that violates state law, breaks ethical standards, or breaches a contract, the obligee can file a claim against the surety bond for compensation equal to the damages they suffered.
When a claim is filed, the principal has responsibility to pay it. But if they decline to pay, the surety (the bond underwriter) guarantees an immediate settlement to the obligee. The surety will pay the claim, but since the principal has responsibility for all claims, they must repay the surety for the settlement with interest and fees added to the debt.
Surety bonds create an incentive to follow laws and contracts by holding someone accountable for misconduct. Once you, the principal, enter into a surety bond agreement, you become responsible for paying any and all valid claims filed against the bond.
Who Needs Surety Bonds in Mississippi?
Almost anyone may potentially need a surety bond at some point. They can be a requirement to get various kinds of business and professional licenses, and they are common throughout the construction and contracting industries. Any arrangement where one party needs to establish trust in another could potentially involve a surety bond requirement. Meet all those requirements with the help of Viking Bond Service.
What are the Different Types of Surety Bonds in Mississippi?
- Commercial Surety Bonds — Business owners, entrepreneurs, and professionals may need a commercial surety bond to acquire a state or local license.
- Contract Surety Bonds — Contracts may require one party to get a surety bond making them liable to the other party if contractual terms aren't met.
- Court Surety Bonds — A judge can require parties in civil or criminal trials to get surety bonds making them responsible for following the court's judgment.
- Fidelity Surety Bonds — A business can choose (typically these bonds are not mandatory) to get a fidelity bond that pays for damages caused by employee theft or misconduct.
How Do I Get a Surety Bond in Mississippi?
The first step is to find a surety agency to work with. They will handle finding competitive bond offers and streamline the process for the benefit of the bond seeker. Getting a bond only requires a few steps in most cases:
- Complete a bond application. Business partners may need to complete multiple applications.
- Submit to a credit check.
- Provide additional documents at the surety's request.
You will get a quote for the cost of the surety bond based on the application materials. Pay the premium to activate the bond coverage for a set term. After paying, the surety will provide documents to prove the bond requirements have been met.
What Does a Surety Bond in Mississippi Cost?
Surety bond costs vary depending on the type of surety bond, the coverage amount, and the bond seeker's credit standing. They are typically a small percentage of the coverage amount. If you are worried that bad credit will make it harder to get approved for a bond or find a fair rate, take advantage of a special program offered by Viking Bond Service for people just like you.
Do I Need to Renew a Surety Bond in Mississippi?
Some bonds expire at the completion of a contact, trial, or other arrangement with a definite end date. But other bonds require renewal into perpetuity, especially commercial bonds that someone needs to keep a professional license. The licenses lapses if the bond converge lapses, so it's important to renew on time every year. Another credit check will be run at renewal time, and changes to credit since the last renewal will lead to higher or lower bond costs than before.
Viking Bond Service for Surety Bonds in Mississippi
Viking Bond Service offers everything you're looking for: helpful service, competitive rates, and fast quotes for every kind of bond you may need to get. We serve the entire state of Mississippi, and we deliver quotes in under 24 hours in most cases. Find out how much your bond would cost by requesting a quote now - there's no obligation to get a bond. Want more information? Contact us or call 1-888-2-SURETY (1-888-278-7389).
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