Surety Bonds in Vermont
Complying with Vermont surety bond requirements doesn't have to be a hassle – especially when you understand what's involved and rely on an agency like Viking Bond Service to help. This page covers the basics of Vermont surety bonds to get you started.
How Do Surety Bonds in Vermont Work?
A surety bond makes the bondholder (the principal) financially responsible for any damages they cause to another party (the obligee) because of misconduct that's illegal, unethical, or in breach of contract.
When the obligee suffers financial losses because of the principal, they can file a claim for compensation against the surety bond. The company that issues and underwrites the bond (the surety) will then investigate the claim, and if it holds up, the principal must pay for the claim.
If the principal won't settle, the surety guarantees full payment to the obligee. The principal still has liability for claims, though, so they must repay the surety the settlement amount or face the risk of a lawsuit, having the debt sent to collections, or loss of bond coverage.
Types of Surety Bonds in Vermont
There are four common surety bond types:
- Commercial – Bonds often required to get a business or professional license.
- Contract – Bonds someone must get to finalize a contract. These are common in the construction industry.
- Court – Bonds a judge orders someone to get before a trial moves forward or before serving in a court-appointed role.
- Fidelity – Bonds a business can choose to obtain to recoup losses related to employee misconduct like theft, fraud, or property damage.
Who Needs Surety Bonds in Vermont?
From motor vehicle dealers to mortgage brokers and plumbers, many people in Vermont may need surety bonds. Sometimes surety bond requirements are predictable, while others come up unexpectedly. That's why everyone should know about a surety agency like Viking Bond Service that can make the bonding process fast, easy, and affordable for anyone who needs one.
How to Get Surety Bonds in Vermont
Most (but not all) surety bonds involve just a few steps to apply for, after which you just need to pay the premium to activate coverage. To apply:
- Complete a bond application
- Submit to a credit check
- Turn over extra docs the surety asks for (when necessary)
How Much Do Surety Bonds in Vermont Cost?
In most cases, the cost of surety bonds is a small percentage of the coverage amount. Someone's credit score and financial history determine the final amount. Bad credit can make it harder to get approved for a bond or find fair rates, but Viking Bond Service has a special program to help.
Do You Need to Renew Surety Bonds in Vermont?
Some bonds, primarily commercial bonds, require coverage renewals. Most bonds have active terms of 12 months, but longer and shorter terms are possible. To renew a bond, someone needs to undergo a new credit check and pay an updated premium price. This premium could be higher or lower than before based on credit changes.
Get Surety Bonds in Vermont From Viking Bond Service
Get whatever Vermont surety bond you need, whenever you need it, and wherever you're located, with the help of Viking Bond Service. Request a quote at any time – responses usually take less than 24 hours. For more information and questions, contact us or call 1-888-2-SURETY (1-888-278-7389).
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