Surety Bonds in Oregon
As a surety bond company with many years of experience, Viking Bond Service knows how to get you the surety bond you need, when you need it. We understand that finding an affordable bond is a vital step in helping your business stay compliant with all state regulations. That's why we make it our priority to help you find the best surety bond for your needs. We're experienced at helping Oregon-based businesses secure both commercial and contract bonds. Use our quick and easy application form to get started.
How Does a Surety Bond in Oregon Work?
Surety bonds can seem confusing at first. That's understandable. But the way they work, across all different surety bond types, is quite straightforward. The best way to explain it is by highlighting the three parties involved in any surety bond agreement:
- Principal – The principal is the person who gets the bond. They will need a specific type of bond with a minimum amount of coverage. If someone then files a valid claim against the bond, the principal must pay for it – financial liability for claims always rests on the principal.
- Obligee – The obligee is someone who suffers financial losses because of illegal or contractually prohibited actions on the part of the principal. When this happens, the obligee may file a claim against the bond seeking compensation equal to the damages.
- Surety – The surety is the company that underwrites the bond. If the principal fails to settle a claim with the obligee, the surety guarantees a settlement. Afterward, they will focus on collecting the settlement amount (plus interest and fees) from the principal who still has liability for that claim. Failure to repay the surety will result in loss of bond coverage and possibly a lawsuit.
Who Needs a Surety Bond in Oregon?
Anyone could need a surety bond at some point. That being said, Oregon surety bond requirements apply to some people more often than others. Business owners and professionals, for instance, often need to get a bond before the state will issue them a license. Surety bond requirements are common in the construction industry, too. They ensure the person or company performing the work meets the standards written into the work contract. Even someone not pursuing a license or finalizing a contract may need a bond, specifically in situations where one party needs to establish trust with another. In all of these scenarios, you can rely on Viking Bond Service to get you the right surety bond without overpaying.
How to Get a Surety Bond in Oregon
Securing a surety bond in Oregon is a fast and simple process when you work with an experienced bonding company. All bonds require a completed application form and a credit check before the bond can be underwritten. Viking Bond Service has a simple application process that can be completed online for all commercial bonds, including license and permit bonds. If your business needs a contract bond, you'll need to complete a slightly more in-depth application—our agents will be happy to guide you through the process over the phone. The application may also require supporting documentation providing necessary information about your business financials and your business experience.
The Cost of Surety Bonds in Oregon
There are a number of factors that determine the cost of a surety bond. The main factors include the bond amount, the bond type, and the business' financial situation. A lot of people are surprised to learn that their personal credit score is also a key factor in calculating a bond premium. When a bond company issues a bond, they need to know what risk level that bond poses. If the bond company believes it's likely that your bond will be claimed against or you will be unable to repay any claims made against the bond, you will be charged a higher premium to cover the increased risk. If you have a strong credit history and good business experience, you will be considered a lower risk and charged a lower premium. Viking Bond can help people of all credit scores secure the bond they need.
Common Surety Bonds in Oregon
Our team consists of experienced bonding experts who have experience securing all types of surety bonds in OR. For help finding the right commercial or contract bond, contact Viking today.
There are many types of commercial bonds used in Oregon. These types of bonds are often required as part of the state business licensing process. Because of this, they can also be known as license or permit bonds. Some of the most common license bonds include auto dealer bonds and contractor license bonds.
Contract bonds are common in the Oregon construction industry, where they are used as a form of financial guarantee for contracts. If the buyer of a service or bond fails to receive the contracted goods or work, the bond will reimburse their financial costs. There are three main types of contract bonds – bid bonds, payment bonds, and performance bonds – that are collectively known as Oregon construction bonds.
Court bonds require the bondholder (the principal) to comply with whatever a judge rules. In a civil trial, either the plaintiff or the defendant may need one, and in a criminal trial, a defendant may need one before filing an appeal. In most instances, people serving in a court-appointed role (such as the conservator of someone's assets) also need court bonds.
A business owner can choose to get a fidelity bond to help them recoup losses caused by employee misconduct (theft, fraud, vandalism, etc.). These bonds are not typically a requirement, but they are popular among entrepreneurs because they safeguard against a common business risk.
Renewing Surety Bonds in Oregon
When someone needs to have bond coverage continuously or for a longer period than the bond term (usually 12 months), they will need to go through a renewal process. That process starts with another credit check. The surety will then adjust the premium up or down if the principal's credit has declined or improved since the previous renewal. Paying the updated premium prices renews coverage for another term.
Oregon Surety Bonds by Viking Bond Service
Viking Bond Service has been helping business owners secure affordable surety bonds in OR for many years. Our friendly and efficient service can secure the bond you need in just a few days. Call our agents or use our online application form to get a quote today! If you would like to ask questions or get more info before applying for your Oregon surety bond, our team is here to help! Contact us or call 1-888-2-SURETY (1-888-278-7389).
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