Delaware Surety Bonds Explained
A surety bond is a type of financial guarantee given by one entity to another. In all states, surety bonds are one of the most common mechanisms for making sure businesses are compliant with the conditions of their license, discouraging fraud, and ensuring consumers have a protection tool they can turn to. If the holder of the bond violates the bond agreement and causes financial loss to a third party, that party can file a claim and seek reimbursement.
Whether or not you need to post a surety bond in Delaware will depend on what industry you are in. The table below contains information about most types of surety bonds in the state and whom they are required from. Even if you cannot find the bond you need there, simply give us a call at (877)-514-5146 as chances are, we can help you obtain it.
Find Your Delaware Surety Bond
|Contractor License (No P&P Language) Bond||Statutory Compliance Bond||New Castle County, DE||Apply Now|
|Contractor License (No P&P Language) Bond||Compliance with City Ordinance Bond (Newark, DE)||City of Newark, Code Enforcement Division||Apply Now|
|Contractor License (No P&P Language) Bond||(City of Wilmington, DE) Plumbers Bond||City of Wilmington Dept of Licenses and Inspection||Apply Now|
|Contractor License Performance & Payment (Local) Bond||License and Permit||City of New Castle||Apply Now|
|Contractor License Performance & Payment (Local) Bond||Plumber's Bond (City of Rehoboth Beach)||City of Rehoboth Beach||Apply Now|
|Contractor License Performance & Payment (State) Bond||Non Resident Contractor||Department of Labor, Divison of Revenue||Apply Now|
|Debt Consolidators Bond||Debt Management||State of Delaware||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||Mortgage Loan Broker||Office of the State Bank Commissioner||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||Licensed Lender||Office of the State Bank Commissioner||Apply Now|
|Small Loan Companies Bond||Licensed Lender Surety||Delaware Office of the State Bank Comissioner||Apply Now|
|Auto & Mobile Home Dealers (New & Used) Bond||Motor Vehicle Dealer Bond||Division of Revenue||Apply Now|
|Motor Vehicle (Non-Dealer, Not Listed) Bond||Financing the Sale of Motor Vehice License||State of Deleware||Apply Now|
|Motor Vehicle (Non-Dealer, Not Listed) Bond||Motor Vehicle (Non-Dealer, Not Listed) Bond||Division of Revenue||Apply Now|
|Detectives Bond||Security Systems and Protective Service Agency||Superintendent of the Delaware State Police||Apply Now|
|Detectives Bond||Private Investigative & Private Security Agency Bo||Delaware State Police-Professional Licensing||Apply Now|
|Professional Licenses (All Other) Bond||DELAWARE PUBLIC SERVICE COMMISSION SURETY BOND||Deleware Public Service Commission||Apply Now|
|Professional Licenses (All Other) Bond||Manufactured Home Installer License||DIVISION OF PROFESSIONAL REGULATION||Apply Now|
|Professional Licenses (All Other) Bond||Financing the Sale of Motor Vehicles License||State of Delaware||Apply Now|
|Schools (All) Bond||Private Business and Trade School Contract||DE Dept. of Education||Apply Now|
|Fuel Tax (All Others, Sellers & Users) Bond||Special Fuel (Distillate/LP Gas)||State of Delaware Motor Fuel Tax Administration||Apply Now|
|Fuel Tax (All Others, Sellers & Users) Bond||Motor Fuel Distributor Bond||State of Delaware Motor Fuel Tax Administration||Apply Now|
|Miscellaneous Taxes Bond||Non-Resident Contractor||Division of Revenue||Apply Now|
|Money Transmitter Bond||SALE OF CHECKS AND TRANSMISSION OF MONEY SURETY||OFFICE OF THE STATE BANK COMMISSIONER||Apply Now|
|Money Transmitter Bond||Casher of Checks, Drafts or Money Orders Surety||Office of the State Commissioner||Apply Now|
|Telemarketing/Phone Solicitor Bond||Telemarketing Registration and Fraud Prevention Ac||Director Of The Consumer Protection Unit Of The DE||Apply Now|
|Prepaid/Preneed Funeral Bond||Preneed Funeral Contracts Bond||Office of the State Bank Commissioner||Apply Now|
|Appraisal Management||Appraiser Bond||State of Delaware||Apply Now|
Lance Surety Bonds is committed to working only with the nation’s strongest providers, guaranteeing low rates and strong financial backing.
Continue reading the sections below for some commonly-asked questions about surety bonds in the state of Delaware.
Frequently Asked Questions
What are the different types of surety bonds in Delaware?
Surety bonds can be divided into three main categories:
- License and permit bonds are the largest category of bonds and, as their name implies, they are required when your business is obtaining a business license or permit.
- Contract bonds are required from construction contractors in certain scenarios– most often when they work on public projects, and the government requires them as a way to protect their investment. These should not be confused with contractor license bonds, which many states require when contractors apply to get licensed.
- Court bonds are required under specific circumstances, such as when someone wants to appeal a court decision.
What’s the cost of obtaining a Delaware surety bond?
Before you can calculate your costs of getting bonded, you need to know what the total amount of the bond is. This amount refers to the maximum coverage of the bond. For example, for Delaware auto dealer bonds this amount is $25,000.
You pay only a fraction of that amount to get bonded, known as the bond premium. Premiums are most frequently paid on an annual basis, and less frequently once every two years. The exact percentage is determined only after you submit your application, but it should vary between 1% and 3% in cases where the applicant has good credit. Using the dealer bond example once more, this translates into annual payments of between $250 and $750.
Your financial statements, citizenship status, and even your resume can also influence your premiums. Learn more about it on our “What Does a Surety Bond Cost?” page.
Can I get my surety bond with bad credit?
While it is certainly true that your credit score plays an important role in determining your premium, in most cases it will not prevent your from getting bonded.
For license bonds, we have an approval rating of 99% and premiums generally vary between 4% and 15%. Most types of bad credit surety bonds will not call for a co-signer, nor require posting collateral.
Obtaining contract bonds, on the other hand, isn’t usually possible for applicants with bad credit. The project amounts of contracts most frequently requiring these bonds are simply too high, so bonding companies are unwilling to undertake the risk.
How to get bonded in Delaware
The application process also varies slightly based on the exact type of surety bond you need. Some bonds are subject to underwriting considerations, while others don’t even require a credit check.
Most bonds, however will require that the surety looks into your credit report and that you sign an indemnity agreement, guaranteeing the underwriter that you will reimburse them for all losses incurred by any claims you trigger.
For contract bonds, posting personal financial statements, as well as income statements and balance sheets, is obligatory. You can sometimes submit these for a license bond application as well, because strong financials and balance sheets may reduce your premium.
Most Popular Surety Bonds in Delaware
Also known as a motor vehicle dealer bond, this bond is required in support of the principal’s license for the benefit of the State Bank Commissioner and all consumers injured by any possible wrongful actions, default, fraud, or misrepresentation by the principal.
The State Bank Commissioner requires this bond be obtained by all mortgage lenders and mortgage bankers operating in the state. It ensures compliance with the specific license provisions outlined in Chapter 22, Title 5 of the Delaware Code. The principal sum of the bond must comply with the requirements of Commissioner’s Regulation Number 2204.
Similar to the bond required for Licensed Lenders, this $25,000 bond is required by all mortgage broker or loan originators in order to ensure compliance with Chapter 21, Title 5 of the Delaware Code. It is required by the State Bank Commissioner for the benefit of all consumers injured by wrongful actions, fraud or misrepresentation by a licensee. Compensation under the bond shall represent actual financials losses.
Telemarketers in Delaware need to post a $50,000 surety bond, which ensures their compliance with the Delaware Code, Chapter 25A. The bond remains in effect for 3 years after the termination of a telemarketer’s license.