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.

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.

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.

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.