North Dakota Surety Bond Regulations
Surety bonds are a regulatory mechanism used by all states to protect third parties against loss. Most often, surety bonds are a requirement for a business that’s applying for a license, similar to getting insurance.
Unlike insurance, surety bonds are required for the protection of the state and the business’s clients, not the business itself. The bond agreement is backed by a surety, which assumes legal and financial responsibility for the actions of the bonded party (principal).
In North Dakota, there are a number of businesses that will need to get bonded prior to getting licensed. Several other circumstances may warrant a bond as well. You can look for the bond you need in the table below. But even if you can’t find it, we can still help. We offer all types of bonds in North Dakota; just call us at (877)-514-5146.
Find Your North Dakota Surety Bond
|Market Agencies/Dealers Bond||Roving Grain Buyer's Bond||North Dakota Public Services COmmission||Apply Now|
|Agricultural (Non-Livestock) Bond||Roving Grain Buyer's Bond||Public Service Commission||Apply Now|
|Contractor License (No P&P Language) Bond||LicenseBond||Department of Commerce||Apply Now|
|Contractor License Performance & Payment (State) Bond||Manufactured Home Installer Bond||North Dakota Department of Commerce||Apply Now|
|Contractor License Third Party Liability Bond||Contractor License Third Party Liability Bond||Public Service Commission||Apply Now|
|Collection Agency Bond||Collection Agency||Dept of Financial Institutions, Consumer Division||Apply Now|
|Professional Fund Raisers Bond||Uniform Professional Fundraiser||Secretary of State||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||Surety Bond for Money Brokers||Dept of Financial Institutions, Consumer Division||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||Mortgage Lender||Dept of Financial Instituions, Consumer Division||Apply Now|
|Auto & Mobile Home Dealers (New & Used) Bond||Motor Vehicle Dealer||Department of Transportation - Motor Vehicle Divis||Apply Now|
|Auto & Mobile Home Dealers (New & Used) Bond||Mobile Home and Manufactured Home Dealer Bond||Department of Transportation||Apply Now|
|Auto & Mobile Home Dealers (Used Only, No New) Bond||Motor Vehicle Dealer||Department of Transportation - Motor Vehicle Divis||Apply Now|
|Employment Agencies Bond||Professional Employer Organization Bond||Secretary of State||Apply Now|
|Itinerant Merchants Bond||Transient Merchant||Attorney General||Apply Now|
|Itinerant Merchants Bond||Itinerant Merchants Bond||City of Grand Forks||Apply Now|
|Itinerant Merchants Bond||Itinerant Merchants Bond||City of Mandan||Apply Now|
|Itinerant Merchants Bond||Itinerant Merchants Bond||City of Minot||Apply Now|
|Retail Stores & Service Shops||Transient Merchant Bond||Consumer Protection & Antitrust Div- Office of AG||Apply Now|
|Professional Licenses (All Other) Bond||Transient Merchant||Consumer Protection & Antitrust Div - Office of AG||Apply Now|
|Professional Licenses (All Other) Bond||Deferred Presentment Service Provider Bond||ND Department of Financial Institutions||Apply Now|
|Sales, Use & Consumer Tax Bond||Sales and Tax Permit||Office of the State Tax Commissioner||Apply Now|
|Auctioneer's (Net Proceeds Meet Amount) Bond||Auctioneer||Public Service Commission||Apply Now|
Questions about Surety Bonds in North Dakota
What are the different types of surety bonds in North Dakota?
Usually, you will be required to post one of the following three categories of bonds:
- License and permit bonds are the types of bond that businesses need when applying for a license or a permit in ND. Some examples include collection agencies, money transmitters, contractors, grain buyers, and transient merchants.
- Contract bonds may be required from a contractor bidding or performing work on a construction project. Usually, these bonds are required on large public projects, but increasingly they are also being required for P3 and private projects as well.
- Court bonds can be required to guarantee that a third party will uphold their legal obligations in front of a court. Court bonds are also required from some individuals appointed by a court as custodians, fiduciaries, or guardians.
What’s the cost of getting bonded in North Dakota?
How much you will end up paying to get bonded depends on a number of factors. To get started, you need to know the required total value of your bond. This total value is sometimes referred to as the bond’s penal sum.
For auto dealer bonds, the total bond amount is $25,000, meaning that a claim against the dealer’s bond cannot exceed $25,000. To get bonded, the dealer needn’t pay that full amount upfront. Instead, they pay a yearly premium to the bonding company in exchanges for its backing.
Premiums depend mostly on the applicant’s FICO score. Applicants with a score of 700 may pay as little as 1% of the bond’s value, which means that a bond of $25,000 may cost just $250 a year. Premiums tend to go up as the applicant’s credit score goes down, and can reach 15% for some bonds. In most cases, however, they won’t go above 10%.
It’s important for surety bond applicants to understand the other factors that influence their premiums, so they can prepare a stronger application. These include financial statements– business or personal– as well as a resume of their experience. The business’s age is also a factor. Find out more on our “What Does a Surety Bond Cost?” page.
How do I get my North Dakota surety bond?
The application process is simple, but there are small differences based on whether you are applying for a contract bond or a license bond.
License Bond Application
All you need to do to get your license bond is submit our online application– it takes just five minutes. We’ll respond with a free bond quote based on the information you provided, and, once you purchase your bond, we’ll mail you the original bond form within two business days.
Contract Bond Application
To apply for a contract bond simply fill out the application and our experts will get back to you shortly.
You can get pre-approved for a bond line of up to $500,000. If you need a higher bond line, you must have a certified CPA prepare financial statements for the past 3 years.