What is a Connecticut surety bond?
Surety bonds can be a confusing regulatory requirement, especially for new business owners or businesses who extend to new fields.
Surety bonds are required of certain individuals or businesses. In essence, they are a contractual agreement between three sides:
- A principal, who is required to obtain the surety bond
- An obligee, who mandates the requirement
- A bonding company, who underwrites the bond
Lance Surety Bonds can help you get any type of Connecticut surety bond you need. If you know the type of bond you want to get, you can find it in the bond table below and click “Apply now.” Or, call us at (877) 514-5146 if you need further assistance.
If you want to read more, you can explore the rest of this section for some frequently-asked questions about Connecticut surety bonds.
Find Your Connecticut Surety Bond
|Freight Broker Bond (BMC-84)||N/A||FMCSA||Apply Now|
|General license & permit bond (not listed)||N/A||N/A||Apply Now|
|Contractor License Performance & Payment (Local) Bond||Town of Berlin Bond||The Town of Berlin||Apply Now|
|Contractor License Performance & Payment (Local) Bond||Town of South WIndsor Drain Layer's or Excavation||Town of South Windsor||Apply Now|
|Excess Weight, Other Highway & Street Permit Bond||Bureau of Engineering & Highway Operations Permit||State of Connecticut, Dept of Transportation||Apply Now|
|Excess Weight, Other Highway & Street Permit Bond||Town of Farmington Permit Bond||Town of Farmington||Apply Now|
|Excess Weight, Other Highway & Street Permit Bond||(City of Norwalk, CT) Street Opening or Encroachme||City of Norwalk, Connecticut||Apply Now|
|Collection Agency Bond||Collection Agency $25K||Commissioner of Banking||Apply Now|
|Debt Consolidators Bond||Debt Negotiator||Banking Commissioner of the State of Connecticut||Apply Now|
|Debt Consolidators Bond||Debt Negotiator Bond||Connecticut Department of Banking||Apply Now|
|Debt Consolidators Bond||Debt Negotiator Bond||Banking Commissioner of the State of Connecticut||Apply Now|
|Professional Fund Raisers Bond||Fund Raising Counsel or Paid Solicitor||State of Connecticut, Dept of Consumer Protection||Apply Now|
|Insurance 3rd Party Administrator Bond||Third Party Administrators (TPA) Bond||CT Dept. of Insurance||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||Mortgagee Licensee||Commissioner of Banking||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||Mortgage Licensee Bond||Dept of Banking||Apply Now|
|Auto & Mobile Home Dealers (New & Used) Bond||Motor Vehicle Dealer||Department of Motor Vehicles - Dealers & Repairers||Apply Now|
|Auto & Mobile Home Dealers (Used Only, No New) Bond||Motor Vehicle Dealer||Department of Motor Vehicles - Dealers & Repairers||Apply Now|
|Motor Vehicle (Non-Dealer, Not Listed) Bond||Registration Issuance||DMV- Dealers and Repairers Division||Apply Now|
|Professional Licenses (All Other) Bond||Secondhand Dealer's License Bond||DESPP||Apply Now|
|Schools (All) Bond||Driving Schools Bond||Department of Motor Vehicles||Apply Now|
|Contractors Tax (Blanket Contracts) Bond||Nonresident Contractor Verification Bond||CT Department of Revenue Services||Apply Now|
|Fuel Tax (All Others, Sellers & Users) Bond||Surety Tax Bond||Connecticut DRS||Apply Now|
|Utility Deposit Bond||CT Light & Power Surety||Connecticut Light & Power||Apply Now|
|Lottery Bond||Lottery Sales Agent||Connecticut Lottery Corporation||Apply Now|
|Money Transmitter Bond||Money Transmission Licensee||Banking Commissioner||Apply Now|
Questions about Surety Bonds in Connecticut
How much does a Connecticut surety bond cost?
It’s easy to get at least a rough estimate of the price you will have to pay for your bond. You need to know the total bond amount, which is the sum listed on the bond and required by the state. For example, a Connecticut auto dealer is $60,000. This sum refers to the maximum coverage the bond offers to the bonded dealer’s customers, and not to the bond’s cost.
Surety bonds are obtained by paying a premium– usually annually or biannually– and this premium is a small percentage of the total bond amount. Your bonding company will determine your premium. If your credit score is high, you can expect to pay between 1% and 3% of the bond amount.
Can I get a Connecticut surety bond with bad credit?
It can be tough to get bonded with bad credit. Luckily, Lance Surety Bonds can help. We have an exclusive program for applicants with bad credit.
Since we work only with A-rated and T-listed sureties, we can offer high-quality surety bonds in Connecticut even if you have credit issues. Because of the higher risk involved, sureties will ask for higher premiums– in the range of 5% to 15%. We can help here too, though. If you want to reduce your premiums, we can help you explore your options. You may be able to reduce your premium by submitting strong financial statements or a resumé, which are a signal to the surety that there is less of a risk in getting you bonded.
For even more tips and information about surety bond costs, visit our page with all the facts you need.
How do I get bonded in Connecticut?
Lance Surety Bonds offers a very quick and user-friendly way to get bonded: our online application tool. It takes just a few minutes to complete, and one of our agents will quickly get in touch with you to help you finalize your application.
When we receive the bonding agency’s signature, we will send you the original bond form, which you can present to the obligee that requires it. Copies are also available via mail, email or fax.
Still got questions about Connecticut surety bonds? Call us at (877) 514-5146 and we will do our best to help. You can also visit our How to Get Bonded page.
Types of Connecticut Surety Bonds
There are three main types of surety bonds you may be required to post in Connecticut:
- License Bonds: Also known as commercial bonds, these are the most frequently required type of bonds in all states. Certain businesses need them before they can get a license or a permit to operate in Connecticut. The purpose of license bonds is to protect consumers and local governments.
- Construction Bonds: Also known as contract bonds, are required from contractors who work on certain public (and sometimes private) projects. Their purpose is to protect the investment of the project owner and ensure the project is completed on time and per the contract.
- Court Bonds: These types of bonds are relatively less frequently required. A Connecticut court may mandate that you obtain a court bond under some circumstances, e.g., if you are appointed fiduciary to somebody’s assets or property, or if you wish to appeal a court decision to a higher instance.
Lance Surety Bonds can help you obtain all three category of bonds.
Most Popular Surety Bonds in Connecticut
The state DMV mandates a $60,000 bond amount for Motor Vehicle Dealers, a $10,000 bond for Leasing or Rental Companies, and a $5,000 amount for Motor Vehicle Repairers. These bonds are required in order to compliance with all regulations and provisions pertaining to the principal’s respective license.
A $25,000 bond required by the Commissioner of Banking. It is mandated of all consumer collection agencies licensed in the state to ensure the faithful accounting for all funds entrusted to them.
The Banking Commissioner of Connecticut requires that all Mortgage Brokers, Mortgage Lenders and Mortgage Loan Originators secure a surety bond to guarantee compliance with the provisions of their respective license. The same bond form is currently used for all Mortgage Licensees, as the appropriate license will need to be checked off.
If you execute fundraising campaigns for charitable organizations, you need this surety bond to ensure proper management of collected funds.
Various types of specialists across cities and municipalities in Connecticut may need to post a contractor license bond in order to launch legal operations in the state.
Alcoholic beverage distributors need to have an alcohol tax bond for either $500 or $2000, depending on the gallons of wine sold.
The state’s Banking Commissioner requires this $40,000 bond be posted by all licensed debt consolidators in Connecticut. The bond ensures that all negotiators will faithfully perform any and all written agreements.