What Is a Washington D.C. Surety Bond?
A Washington, D.C., surety bond is required from many types of businesses and individuals. It ensures their legal compliance and protects the state and its citizens from potential fraudulent activities by the bonded parties.
Surety bonds are, in practical terms, a contract between three entities. Your business-- or yourself-- is the principal. The obligee is the authority that demands the bond, while the surety is the one providing the bond and its backing.
You would most often be required to post one of these three types of Washington, D.C., surety bonds:
If you need to obtain a professional license from your state or local authorities, you might have to post a license bond. It’s usually necessary for auto dealers, freight brokers, and mortgage brokers, along with various other businesses.
If you’re a construction contractor bidding on private or public projects, you will likely need contract bonds. Their purpose is to guarantee that you will complete your contractual obligations, and finish the project according the negotiated time frame and quality standards.
A Washington, D.C., court might ask you to obtain a court bond in some special cases. For example, you might need a fiduciary bond if you are appointed as a guardian of another person’s assets, or you might need an appeal bond if you want to bring a court case to a higher instance.
You can start your bonding process by locating the Washington, D.C., surety bond that you need in the table below. Do you need a different type of bond? The complete list of bonds in the district is available at the end of the page.
You can always call us at (877) 514-5146 for any questions you have. We are here to help!
Most Popular Surety Bonds in Washington D.C.
New and used motor vehicles in Washington, D.C., need to post a $25,000 auto dealer bond in order to operate legally in the district.
Mortgage brokers and other professionals dealing with lending are required to post a mortgage broker bond. Amounts vary depending on the exact role and lending amounts.
If you want to operate an employment agency in Washington, D.C., you will need to post a bond to obtain your license from the D.C. Department of Consumers & Regulatory Affairs.
To get a home improvement license in Washington, D.C., you have to obtain a $25,000 contractor license bond.
All freight brokers across the U.S. are required to get a $75,000 freight broker bond.
Insurance adjusters in Washington, D.C., need to provide a $20,000 bond to the D.C. Department of Consumers & Regulatory Affairs to operate in compliance with the law.
Questions about Bonds By State
How much does a Washington, D.C., surety bond cost?
How much you will pay for your Washington, D.C., surety bond depends on the amount that the state or local authority requires from you. For freight brokers, for example, the amount is set nationally, while for auto dealers it’s set on the state level. In other cases, local authorities decide on bond amounts, or they may be set on an individual basis.
Your surety bond cost is different from the bond amount. In fact, it’s only a fraction of it, called the bond premium. Usually, the percentage is between 1% and 4% of the total amount for standard bonding market applicants.
To obtain your exact bond price, you need to apply with a surety. The surety takes a close look at your personal and business financials, including your personal credit score, business finances and assets. The goal of this examination is to establish the stability of your business. If it’s solid, you will be issued a lower premium.
Can I get a Washington, D.C., surety bond with bad credit?
Getting bonded with bad credit can be tricky. With Lance Surety Bonds’ Bad Credit Program there is still a solution for applicants with a low credit score, liens, past bankruptcies or civil judgments.
The bad credit bonding premiums range between 5% and 15%, allowing you to still get the bond that you need to advance your business. While the price is higher, you can be sure you’re getting the same top bonds at the best rates. We work with a number of established A-rated, T-listed surety companies, and this gives us the freedom to shop around for the best bonding option for you.
How to get bonded in Washington, D.C.?
Getting your Washington, D.C., surety bond is a straightforward process. Just apply online today to get a free bond quote. For the full assessment of your finances, complete the application and submit all paperwork. We’ll get back with your exact bond cost in no time.
Our bonding experts are here to help. Call us at (877) 514-5146 and we’ll happily assist you with your bonding application - or any other issues you might have.
A complete overview of the bonding process is also available on our How to Get Bonded page.