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Surety Bonds in Ohio

Viking Bond Service has been helping Ohio businesses secure surety bonds for many years. Our vast experience and knowledge of bonds in Ohio makes Viking one of the leading surety bond companies in OH. Our surety bond experts understand that finding the right bond is an essential part of running many businesses in the state, especially when those bonds are a requirement of the business licensing process. For advice on finding the right bond to ensure you comply with all state laws, call or email the team at Viking Bond Service today. We're here to help with all of your surety bond needs.

How do Surety Bonds in Ohio Work?

A surety bond agreement, no matter what surety bond type it applies to, involves three parties entered into a legally binding contract. One person in the contract (called the principal) is bound to follow any laws, regulations, or contractual obligations that apply to their conduct and performance. If they do not and it results in damages for another party (called the obligee), the surety bond gives the obligee a way to recoup their losses.

The obligee may file a claim against the surety bond for compensation equal to the damages. The claim will be investigated, and provided that it has merit, the principal is liable for paying the claim in full. This is how surety bonds hold the bondholder accountable for their misconduct – by requiring them to pay for the resulting damages.

In the event that the principal declines to pay, the company that issues and underwrites the bond (called the surety) offers a guaranteed settlement to the obligee without further delay. This illustrates how surety bonds help any valid victim of misconduct recoup their losses – by providing a settlement even if the principal won't pay.

The financial liability always rests on the principal even if the surety steps in to pay. When that happens, the principal must repay the surety the full settlement amount (plus interest and fees) in a timely manner. If this debt goes unpaid, it results in loss of bond coverage and could lead to legal action.

Who Needs a Surety Bond in Ohio?

Ohio Surety bond requirements help one party establish trust in another by holding them liable for misconduct and creating a powerful incentive to do everything as required. Obtaining a business or professional license often requires a surety bond. Finalizing a contract, especially a contract in the construction industry, usually requires a surety bond as well. Though some people are more likely to need surety bonds than others, requirements can apply to anyone and appear unexpectedly. That's why everyone should know about Viking Bond Service – a national surety agency that can help people obtain whatever Ohio surety bond they need.

How to Get a Surety Bond in Ohio

Finding an affordable surety bond in OH can be quick and easy when you use an experienced bonding company. Viking Bond Service has developed a bond application process that can help you secure a bond often within 24 hours. To start the bonding process, you'll need to submit an application form and any additional documentation that may be required. This documentation can include financial information and information specific to your bond request. Viking Bond Service will then use this information, along with an analysis of your credit, to calculate your bond premium. The surety bond will be issued once the premium has been paid.

The Cost of Surety Bonds in Ohio

The cost of surety bonds in OH is calculated using a number of factors, which include the bond amount, bond type, and the personal and business financial information submitted with the application. As a surety bond acts as a form of credit, the premium is heavily influenced by your credit history. The surety underwriter calculates the chance that your bond will cost the surety money based on the strength of both your credit and personal and business finances. People with a high credit score are considered to be a lower risk than those with lower scores; this means that those with higher scores will pay a lower premium. Viking Bond Service can help people, whatever their credit score, find the right bond for their business.

Common Surety Bonds in Ohio

There are several main types of surety bonds in OH: commercial bonds, contract bonds, court bonds, and fidelity bonds. The team at Viking Bond Service can help businesses in Ohio secure all of the common surety bonds in OH.

Commercial bonds in Ohio are commonly needed to obtain business licenses in the state. These bonds can also be known as permit bonds and license bonds. Some of the commercial bonds commonly used in Ohio include contractor's license bonds and lottery bonds.

Contract bonds are used to help ensure that a business complies with the terms of a contract. If a business fails to meet its contractual obligations, the other party in the contract can make a claim against the bond. These bonds are commonly used in the Ohio construction industry to provide a financial backup that ensures parties paying for work or supplies do not lose money if the goods or services are not supplied. They are available in three main types: bid bond, performance bond, and maintenance bond.

Court bonds are a tool that judges use to ensure that participants in legal proceedings follow their orders and rulings. For example, in a civil trial, the plaintiff may need to obtain a surety bond that makes them liable to return property or pay damages to the other party. Someone serving as the executor of an estate or another court-appointed role may also need a court bond before the judge will approve them to serve in that role.

Fidelity bonds pay a business owner damages when an employee causes losses to the business or its customers. Losses could be caused by employee theft, vandalism, or fraud. It's important to note that fidelity bonds are not required. Business owners obtain them voluntarily, but they are popular as a form of insurance against an issue that many businesses contend with.

Ohio Surety Bonds by Viking Bond Service

Viking Bond Service offers premier services for obtaining surety bonds in Ohio. Our team boasts many years of experience helping businesses secure the right bond for their needs. Request a quote at your convenience or get more information by contacting us online or calling 1-888-2-SURETY (1-888-278-7389).