Rhode Island Surety Bonds

Most often, it is businesses which need to post surety bonds. Based on their intended purpose, surety bonds can be separated into three categories:

• License or commercial bonds are the type of bonds required most often. Many businesses have to post them as an extra layer of protection for the state and their customers.

• Contract bonds are only required for work on construction projects. There are several different types of bonds in this category. Broadly put, they protect the project from contractor default and breach of contract.

• Court bonds are less frequently required. People appointed as guardians or fiduciaries are sometimes mandated to post them to make sure they act in the best interest of the parties they represent. Appellants may also be asked to post them.

You can quickly estimate the cost of getting bonded. First, you need to know exactly which surety bond you need to post, because each bond has a different total value required. This value refers to what a claimant can get if their claim is successful.

Principals only pay a certain percentage of that value, called a premium. It is surety bond companies who decide what your premium will be after a thorough evaluation of your application. The most important information they look for is your credit report. Applicants with good credit generally pay between 1% and 4% of the value of the bond.

Other factors, such as the applicant’s experience and financial strength, can also be considered. Get more cost-saving tips on our What Does a Surety Bond Cost? page.

Applicants with bad credit or no credit history are considered a higher risk by surety underwriters, which is why they sometimes can be denied a surety bond.

Lance Surety Bonds offers a bad credit surety bonds program with the purpose of helping such applicants post the required bond and remain in compliance. Premiums generally vary between 4% and 15%. If you take steps to improve your report, or strengthen your finances, you can expect decreasing premiums when you renew your surety bond.

The bonding process is simple. You need to submit an online application - this is a very secure and quick way to get your bond.

You will receive a free bond quote, and one of our agents will be in touch with you to help you finalize your application. Processing times vary for each bond, but we’ll do our best to get yours ready in as little as 2 business days. For any questions, do not hesitate to call us at (877)-514-5146 and we will happily help you.