License and Permit Bonds are a broad category of commercial surety bonds. Most states, and many municipalities have individual licensing requirements for many different types of businesses including contractors, restaurants, insurance adjustors, ect. These bonds guarantee that the licensee will comply with all the requirements of that state or municipality. These license bonds protect the general public by giving the consumer, the state or the municipality the ability to file a claim against the license bond if the licensee does not uphold their duties.
Most license and permit bonds are easily obtainable. Many of our license and permit bonds are instant issue and do not require any underwriting information. These license bonds can be issued in a matter of minutes. For some classes of license bonds, an application and credit check may be required.
Each license bond is different but most applicants can expect to pay 1% – 3% of the required bond amount. License bonds typically need to be renewed each year and the bond premium will be due annually. Most surety bond companies will give discounts for purchasing multiple years in advance on license bonds. We work with most major surety bond markets to find you the best price for your situation. Applicants with more challenging credit may have higher rates.
Of course, we are always willing to work with you if you have a more challenging situation. We work with 25+ bond companies with options for all circumstances. Our surety bonds experts have the knowledge and creativity to help most customers. Clients often come to us after others could not help them. We have the easiest process on the web.
First of all, do not panic. Often a claim is filed when there is a dispute. The best thing to do is to reach out to the claimant and try to resolve the situation. If that does not work, the surety bond company will investigate the claim. Like all surety bonds, license bonds are written on the Principle of Indemnity. That means that unlike insurance, the surety bond will seek reimbursement for any losses they incur. However, claims on license bonds are rare.
Although many contractors needs license bonds to operate, these bonds are completely separate from Construction Surety Bonds such as bid bonds, performance bonds and payment bonds. Contractors needing these types of surety bonds will need to qualify separately.
MG Surety Bonds is licensed to sell bonds in every state. Our bond companies are “A” rated and listed on the Treasury’s 570 Circular so they will be accepted by all governing bodies. Contact Us today and we will gladly answer all of your license and permit bonds questions!
License and Permit Bonds are a 3-way guarantee that a business (The Principal) will operate in accordance with Federal, State or local laws and regulations in its field. The Obligee on the bond is the Federal, State or local authority requiring the bond. The company issuing the bond and guaranteeing the performance is the Bond Company (Surety).
Who Needs a License Bond?
Almost every business in every jurisdiction requires a license bond before obtaining a permit to operate in that jurisdiction. Contractors especially need these bonds to be able to obtain and keep their licenses in most places. MG Surety Bonds writes all types of contractor bonds throughout the U.S. These include but are not limited to:
|Street and Road||Roofing||Masonry||Mechanical||Right of Way|
|Contractor Compliance||Signage||Curb and Sidewalk||Concrete||Asphalt|
|Highway Use||Fuel Tax||Business Services||Non-Resident Contractor||Refrigeration and Air Conditioning|
And many more. If you are a contractor needing a license bond, we can help you.
How to Get A License and Permit Bond?
License and permit bonds are easily obtainable. Unlike many brokers, MG Surety Bonds approves and issues most of these bonds online in minutes without ever having to pick up the phone. Simply select the bond you need, pay for it and hit print. Many of our license and permit bonds are instant issue and do not even need a credit check. Of course, you can always call us if you have any questions. It’s the easiest process on the web. MG Surety Bonds is licensed to sell bonds in every state. Our bond companies are “A” rated and listed on the Treasury’s 570 Circular so they will be accepted by all governing bodies.
What If I Have Bad Credit?
At some point, many great companies and owners have had setbacks. Not to worry. MG Surety Bond works with all major bond companies as well as specialty bond companies. Credit is an important piece of the underwriting process but not the only piece. Even if you don’t qualify for an instant issue bond, we can help you get the license bond you need. Please contact us if you have any concerns. There is rarely a situation when we can’t provide a solution. Unlike some internet companies, we are bond experts first. It’s one of the reasons we have been so successful.
What is The Cost for License and Permit Bonds?
Because license and permit bonds are considered less risky by bond companies, they are typically very inexpensive. A company with good credit may pay as little as 0.5%. Even companies with more challenging credit situations can get these bonds but the cost may be higher. MG Surety has access to the major bond companies and will get you the best rate quickly. Most governing authorities require that these bonds be renewed yearly.
Claims Against License Bonds
License bond claims are rare. They guarantee that your business will comply with local laws and regulations. In circumstances, where someone feels that you have violated that duty, they can file a claim on the bond. The claim will then be investigated. If the claim is found to be valid, the bond company will seek reimbursement of any damages from the Contractor (Principal on the bond). It is best to try and resolve any disputes before a claim arises.
We are a company that supports our customers by providing them with the surety bonds they need to thrive. We are not just internet marketers or insurance agents. We are surety bond experts. Our team has over 100 years of combined experience and has access to all major bond companies.
Through creativity, experience and a commitment to the industry, we find a way to say YES and support our customers through bond placement, education and financial advice. MG Surety Bonds is affiliated with The Miller Group. The Miller Group is 60-year-old company that started with a focus on bonding contractors. Our people are dedicated to supporting our customers and giving back to the communities we serve. The Miller Group is committed to placing God, family and community first. We look forward to serving you.
Ben Williams is the President of MG Surety Bonds. He grew up working for a family owned business before eventually starting two of his own. He understands the risks and challenges that business owners face and the importance of surety credit in growing and maintaining a company’s revenue. Ben has held leadership positions, in surety, mergers and acquisitions and finance. He worked for one of the largest brokers in the country before joining The Miller Group and leading their surety practice. Ben holds a bachelor’s degree in Finance along with an Associate in Fidelity and Surety Bonding (AFSB). He also regularly speaks at construction industry associations on surety bonds and construction economics and has been published in multiple industry publications.
Ben leads a team of dedicated surety bond professionals who are the reason for the company’s great success. The team’s only role is to consult, support and serve our bond customers. We work large national accounts and accounts that need their first bond. We hope to have the opportunity to support you and your team. We want to be your surety partner for life!