Surety Bonds In North Carolina
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.
How Does a Surety Bond in North Carolina Work?
There are many different surety bond types, each with specific rules and requirements. Despite those differences, all types share the same purpose: to hold one party accountable for financial losses they cause while ensuring another party receives compensation for those financial losses. All surety bond agreements involve three parties in total:
- Principal - The person who gets the surety bond and agrees to pay for any and all valid claims filed against it.
- Obligee - The person with the right to file a claim against the surety bond for an amount equal to the damages caused by the principal.
- Surety - The company that underwrites the bond, meaning they agree to settle claims with the obligee when the principal can't or won't settle. When that happens, the principal must fully repay the surety in a timely manner or face loss of bond coverage and threat of legal action.
Who Needs a Surety Bond in North Carolina?
North Carolina surety bond requirements most often apply to someone starting or running a business. Getting a business or professional license may require getting a specific surety bond first, such as a North Carolina contractor's license bond. In the construction industry, complying with a work contract frequently requires a surety bond too. Entrepreneurs, professionals, and contractors are the most common people who need a North Carolina surety bond, but individuals may need one as well. For instance, you may need one to get utility services activated. Anyone could need a surety bond at some point in their lives, and everyone can count on Viking Bond Service for help.
How To Get A Surety Bond In North Carolina
The key to getting a competitively priced surety bond in North Carolina is to work with an experienced bonding company. Viking Bond Service makes applying for all types of NC surety bonds quick and easy. You can apply for all commercial bonds in one of three ways: on the phone, online, or via email. For contract bonds, our agents will guide you through the application process on the phone. To request a quote, an application, credit check, and in some cases additional supporting documentation is all that is needed. Supporting documentation when necessary may include your business financials and business resume. Once your application is completed and the premium paid your bond will be issued by the surety bond provider.
The Cost Of Surety Bonds In North Carolina
There are many factors that are used to determine the cost of a surety bond. The information in your application package will allow the underwriters to accurately provide a quote. Two of the main things that will affect the price are the bond type and bond amount. Many people are surprised to learn that their personal credit score and business experience will also impact the bond pricing. This is because surety bond prices are calculated using the risk your bond poses to the surety. Clients with poor credit or limited experience may be seen as a higher risk than clients with a strong credit history and lots of experience. This means that clients with lower credit scores may pay a higher price for their bond. Viking Bond Service works with all applicants, whatever their credit score, to help them secure the right bond with the best terms.
Common Surety Bonds In North Carolina
Surety bonds in North Carolina fall into two main categories, contract bonds and commercial bonds. Viking Bond Service has experience working with all types of bonds in the state.
Commercial bonds are license and permit bonds that are often required as part of the licensing process for businesses that operate in North Carolina. Common commercial surety bonds in NC include contractor license bonds, mortgage broker bonds, and auto dealer bonds.
Contract bonds are commonly used in the North Carolina construction industry. They provide financial backup for contracts used to secure construction projects. If the contracted party fails to provide the goods and services outlined in the contract, the surety bond will provide financial recourse to the wronged party. There are several types of contract bonds: bid bonds, payment bonds, performance bonds, and maintenance bonds.
Court bonds are required by a judge before legal proceedings can move forward. Someone may need a court bond as either the plaintiff or defendant in a civil trial, or as the defendant in a criminal trial. A judge may also require someone to get a court bond before approving them to serve in a court-appointed role, such as the executor of an estate or the conservator of someone's assets.
Fidelity bonds are unique because they are not typically needed to fulfill a bond requirement. Small businesses choose to get fidelity bonds voluntarily. They offer small businesses financial protection against losses caused by employee misconduct such as theft, fraud, vandalism, etc.
Renewing Surety Bonds in North Carolina
Surety bond coverage lasts for a set length of time, usually 12 months, but terms can be longer or shorter. When North Carolina surety bond requirements last longer than the term – as is the case with most commercial bonds and some others – the bond must be renewed for an additional term. Renewal starts with the surety running a 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.
North Carolina Surety Bonds By Viking Bond Service
For all your NC surety bond needs, request a quote from Viking Bond Service. You can contact us online or call 1-888-2-SURETY (1-888-278-7389).
The bonding process for an Auto Dealer is simple. Start with a quote, end with your bond in hand. We keep the process simple.
A Medicare Bond is required of some durable medical equipment suppliers who accept Medicare payments. Learn more and get a quote here.
Surety bond fraud can be costly for the parties involved. Find out more about the risks of fraudlents bonds and how to prevent them from happening to you.
Viking can quote your Auto Dealer Bond within 24 hours. We provide great rates and accept good and bad credit.
