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North Carolina Surety Bonds

Viking Bond Service has been helping North Carolina businesses find affordable surety bonds for over 15 years. At Viking, we understand that starting and staying in business may depend on getting the correct bond when you need it. That's why we've created a fast application process that lets you get an NC surety bond quote within 24 hours. Our team of licensed surety bond agents can help you secure the commercial or contract surety bond you need for your North Carolina business.

What is a North Carolina Surety Bond?

There are many types of surety bonds. Each acts as a risk-management tool that protects people from harm due to potentially illegal or fraudulent behavior by bonded individuals and companies. Government agencies, companies, and individuals can choose to require a surety bond to limit their risk in a wide range of circumstances, from construction projects to probate. North Carolina surety bonds may be required by the state government, county, or city, businesses, or residents of the Tar Heel State.

A NC surety bond promotes adherence to applicable laws and regulations as well as fulfillment of contractual obligations, by creating both a financial incentive and an enforcement mechanism. The bonded party pledges a financial guarantee backed by the surety bond. A third party, the surety, investigates any claims that the bond terms have been violated. The third party reimburses any damages while pursuing repayment from the bonded party.

How Does a Surety Bond in NC Work?

All surety bonds in NC and elsewhere are legal contracts between three essential parties:

• Principal - The person or company that obtains the surety bond and agrees to pay for any valid claims filed against it.
• Obligee - The person, business, or government agency that requires the surety bond be in place.
• Surety - The insurance company that underwrites the surety bond agrees to settle valid claims when the principal can't or won't settle.

Many North Carolina surety bonds are considered "license bonds" because they are required before an individual or company can be licensed to legally perform specific work. For instance, North Carolina requires contractors doing annual business of $30k or more to be bonded in order to be licensed. This serves to guarantee the contractor adheres to the laws and regulations surrounding the license. Let's see how the surety bond works.

Let's say your company hires a bonded contractor for a home improvement job and the contractor stops work in the middle of the job. You attempt to get the contractor to finish the job but they refuse to and cause you a potential loss. Because the company is bonded, you can file your claim with the bond surety. The surety investigates all claims thoroughly. When they prove the violation occurred, the surety will reimburse you up to the bond's total value. The North Carolina bond ensures your damages are covered, limiting your risk when you hire a bonded contractor.

Once the surety pays a claim, they seek repayment from the bond principal, including applicable fees and penalties.

Types of Surety Bonds in North Carolina

There are many, many types of surety bonds in North Carolina. But they can all be filed under three primary categories:

• Commercial Bonds - These bonds often must be acquired before you can legally perform the bonded service. Examples include alcohol liquor license bonds, health club bonds, and roofing bonds.
• Contract Bonds - These bonds provide protection for a contractual obligation, often construction projects. This type includes Bid Bonds, Performance Bonds and Payment Bonds.
• Fidelity Bonds - Fidelity bonds, or policies, are used to protect a business from illegal activity on the part of the employees. Fidelity bonds are most often voluntary and used to give the business' clients peace of mind. These include Janitorial Services Bonds and Dishonesty bonds, among others.

Viking Bond Service is your surety partner for whatever type of North Carolina surety bond you need!

Who Needs an NC Surety Bond?

NC surety bonds most often apply to someone starting or running a business. Entrepreneurs, professionals, and contractors are the most likely people to need a surety bond. It is often a requirement for doing business legally. However, individuals may need one as well. For instance, you may need a utility deposit bond to get utility services activated. Or, you might lose the title to your car, requiring that you get a lost title bond before you can sell the vehicle. Anyone could need a surety bond at some point in their lives, and everyone can count on Viking Bond Service for help.

How Much Does a North Carolina Surety Bond Cost?

Two primary factors determine the cost of a surety bond in North Carolina. They are the bond amount and the principal's credit. The bond obligee, the entity that requires the bond, establishes the bond amount that satisfies the requirement. The surety premium is typically 1%-5% of the bond value. So, a $20,000 surety bond costs between $200 and $1,000. Your credit rating determines the specific percentage you pay, with sterling credit qualifying for a lower premium.

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

Your credit history is the best guide a surety company has for determining how risky it will be to bond you. That's why they charge higher premiums for those with credit difficulties in the past. Some sureties refuse to bond someone with poor credit. But at Viking Bond Service, we believe your past difficulties should not limit your future. Our Bad Credit Surety Bond Program works with you to get you bonded for the lowest possible price.

Do You Need to Renew North Carolina Bonds?

Surety bond coverage lasts for a set period, usually 12 months, though longer and shorter terms can sometimes be found. When North Carolina surety bond requirements last longer than the term, the bond must be renewed for an additional term. Bond renewal starts with the surety running another credit check. Any changes to credit since the last renewal will raise or lower the premium price accordingly. Coverage renews upon paying the updated premium.

How Can I Get a Surety Bond in North Carolina?

At Viking Bond Service, we make it simple and hassle-free to get surety bonds in North Carolina. Complete our online application, and we'll send you a competitive quote ASAP. Feel free to contact us online with any questions or call us at 1-888-2-SURETY (1-888-278-7389). Let's get you bonded.