What is a Montana surety bond?
If this is the first time you’ve heard of surety bonds, get a complete understanding by reading our What is a Surety Bond? page. Surety bonds are a regulatory requirement, which either businesses or individuals may need to fulfill.
A surety bond is a binding agreement between three sides:
- The principal is the side which needs to procure the surety bond.
- The obligee is the side which mandates that the principal post the bond.
- The surety is the company underwriting the bond and backing the agreement.
If the principal violates the agreement, they are liable for their actions and may need to compensate any valid claim arising from that violation. As the backer of the bond, the surety needs to reimburse the claimant if the principal can’t. Ultimately, the principal will have to repay that money, as surety bonds typically come with an indemnity agreement between the principal and the surety.
Do you know which Montana surety bond you need? Simply click Apply Now once you locate it in the table below. If you don’t find what you’re looking for, feel free to call us at (877) 514-5146.
Below the table we answer some of the most frequently asked questions about Montana surety bonds.
Find Your Montana Surety Bond
|Contractor License Performance & Payment (Local) Bond||(Whitefish, MT) Public Works Contractor License Bo||City of Whitefish Public Works Dept.||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||Mortgage Broker Licensee Bond||Division of Banking and Financial Institutions||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||Mortgage Lender||Division of Banking and Financial Institutions||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||Mortgage Lender License Bond||Division of Banking and Financial Institutions||Apply Now|
|Title Insurance Agents & Escrow Officers Bond||Escrow Business Bond||MT, Division of Banking and Finacial Instatutions||Apply Now|
|Auto & Mobile Home Dealers (New & Used) Bond||Motor Vehicle Dealer||Title and Registration Bureau||Apply Now|
|Auto & Mobile Home Dealers (Used Only, No New) Bond||Motor Vehicle Dealer||Title and Registration Bureau||Apply Now|
|Professional Licenses (All Other) Bond||Process Server/Levy Officer||Dept of Labor: Board of Private Security||Apply Now|
|Professional Licenses (All Other) Bond||Special Fuel User (Contractor) Bond||Montana Dept of Transportation Motor Fuels Section||Apply Now|
Questions about Surety Bonds in Montana
Are there different types of Montana surety bonds?
There are many different types of surety bonds and they each serve a different purpose, but they can be grouped in three main categories:
- License bonds– also referred to as commercial bonds– are a large group of bonds required from many businesses when they want to obtain a business license in Montana.
- Construction bonds are most frequently required for public projects, to ensure contractors adhere to the terms of the contract. They are sometimes needed for private projects as well.
- Court bonds are most frequently required by a probate court, from individuals who are appointed guardians or fiduciaries. Court appeals may sometimes require a court bond as well.
How much does a Montana surety bond cost?
Each surety bond has a different total bond amount, determined by the state. The total bond amount is the maximum penal sum of the bond, i.e., what you may owe as compensation to a claimant.
To purchase the surety bond, you pay a bond premium determined by the bond underwriter. This amount will vary based on your personal credit score, in addition to other factors you choose to disclose, such as financial statements or resume. Applicants with a good credit score usually pay premiums between 1% and 4% of the total bond amount.
Your personal credit score is the most important factor, because the surety considers it to be the most reliable way of calculating the risk assumed in underwriting each surety bond.
What if I have bad credit? Can I still get bonded in Montana?
If your credit score is compromised, you are considered a high-risk applicant. Sureties want to reduce that risk by offering higher premiums, just like banks offer higher interest rates on riskier loans. Some sureties may even reject your application.
Luckily, Lance Surety Bonds has a program that’s designed especially for bonding bad credit applicants. We only work with the most reliable A-rated and T-listed surety bond companies. Thanks to these partnerships, we can negotiate the best deal on your behalf. Bad credit premiums range between 5% and 15%, and we never ask you to post collateral. We can usualy find you a rate that’s low enough that you don’t have to look for a co-signer.
Visit our What Does a Bond Cost? page for some more tips on reducing your premiums and calculating your bonding costs.
How do I get bonded in Montana?
The process of obtaining a Montana surety bond is a fairly simple one. Our online application is easy to use and will take you only a few minutes. We will contact you shortly after your submission, to request any additional information we’ll need to complete your application.
We’ll match your application with the bonding company that offers the best rate, and will notify you once your bond is ready. You need to submit the original bond form wherever required, but we can provide you copies via fax and email.
Read more on how to get bonded, or contact us at (877) 514-5146 if you have any questions about obtaining your surety bond.