Surety Bonds in Rhode Island
Rhode Island surety bond requirements are more common than you might think. If and when you need to get a surety bond, this page has all the info you need to know.
How Do Rhode Island Surety Bonds Work?
All surety bond types hold one party financially liable for damages they cause another party due to misconduct like illegal activity, unethical behavior, or breaches of contract. In all surety bond agreements, there are three parties:
- Principal – Responsible for getting the surety bond and obligated to pay for all valid claims filed against the surety bond.
- Obligee – Permitted to file claims against the surety bond seeking compensation equal to the damages caused by the principal.
- Surety – Guarantees the obligee a full settlement if the principal can't or won't pay for a claim. The principal must then repay the surety in a timely manner and with interest and fees added to the debt.
Types of Rhode Island Surety Bonds
If you need a surety bond in Rhode Island, it probably falls into one of these categories:
- Commercial Surety Bond – To get a business or professional license (e.g., a motor vehicle dealer)
- Contract Surety Bond – To finalize a contract for work (e.g., a construction contract)
- Court Surety Bond – To meet a judge's mandate (e.g., the executor of a will)
- Fidelity Surety Bonds – To recoup losses caused by employee misbehavior (e.g., a small business owner)
Who Needs a Rhode Island Surety Bond?
Someone may be required to get a commercial, contract, or court bond before they are granted a license, contract, or court approval respectively. Surety bond requirements are common for business owners and contractors, but they can apply to individuals as well, sometimes unexpectedly. That's why everyone in Rhode Island should know about a surety agency like Viking Bond Service that makes getting any bond easy for anyone.
How to Get a Rhode Island Surety Bond
Getting most bonds involves a simple application process:
- Fill out a bond application
- Submit to a credit check
- Supply supplementary info such as financial statements
The surety company that issues the bond will quote a premium based on the application materials. Paying that premium activates coverage and satisfies the Rhode Island surety bond requirement for as long as the coverage term lasts.
How Much Does a Rhode Island Surety Bond Cost?
The cost of a surety bond in Rhode Island depends on three factors: the type of bond, the amount of coverage, and the bond seeker's credit. Premiums are typically a small percentage of the coverage amount, less or more depending on credit.
Do You Need to Renew Rhode Island Surety Bonds?
A surety bond needs to be renewed when the coverage requirement lasts longer than the coverage term. For example, commercial bonds need to be renewed to keep a business or professional license valid. Bond renewal involves a credit check that could raise or lower the premium.
Get Rhode Island Surety Bonds From Viking Bond Service
Request a bond quote at any time and expect a response within 24 hours. Have questions? Contact us or call 1-888-2-SURETY (1-888-278-7389).
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