South Carolina Surety Bonds

What is a South Carolina Surety Bond?

Surety bonds are used in a range of professions and industries in order to guarantee compliance, performance or payment of a specific role. Surety bonds are widely used in the state of South Carolina to protect the state and the public from unscrupulous or illegal business practices.

If you run a business in the state, or offer professional services, you’ll probably need to post a surety bond at some point in order to legalize your company or meet South Carolina regulations.

In practice, South Carolina surety bonds are a contractual agreement between three parties:

• The principal
• The obligee
• The surety

The principal is the individual or company that needs to get bonded in order to carry out a stated task. This task could be something like completing a construction project, taking on work as a mortgage broker or offering investment advice.

The obligee is the authority requiring the bond. The obligee is often a city, state or government department or a licensing board.

The surety is the body underwriting the bond. If the principal fails to fulfill their task, or breaks the rules and regulations governing their profession, the surety will reimburse the obligee for their financial losses and recover this money from the principal.

There are three main types of surety bonds required in South Carolina. Here’s a brief overview:

• License bonds, also known as permit bonds, are often required by state bodies during the professional licensing process. In South Carolina, a number of professions require license bonds. These include auto dealers, freight brokers, mortgage brokers and insurance brokers. Taking out a license bond guarantees that these professionals will operate within the laws of their industry.

• Contract bonds, also known as performance bonds, are most commonly used in the construction industry. Companies often need to get bonded in order to bid on new projects. Contract bonds guarantee fulfillment of contractual obligations.

• Court bonds are probably the least common bond type in South Carolina. Typical cases in which South Carolina courts might require court bonds include when someone is appealing to a higher court or when they’re acting as a fiduciary.

Ready to start your bonding process? Find your South Carolina surety bond in the table below or scroll to the end of the page for the full list of bonds in South Carolina.

Determining Which Surety Bond You Need In South Carolina

There are thousands of different surety bond forms available nationwide. This can make it difficult to work out exactly which one is right for you. However, with your business license dependent on your surety bond, getting it right is essential.

The best way to find out which surety bond you require is to talk to your obligee. This is the government body or licensing board that has asked you to get bonded. They should be able to tell you which bond form you need as well as the bond amount you need to post.

Having this information will help to speed up the bonding process and get you the bond you need even faster.

What Are The Requirements For Surety Bonds in South Carolina?

The requirements for surety bonds in South Carolina vary depending on your industry and the exact bond you need. You can find out more by talking to one of our expert advisors.

How to Get Bonded in South Carolina

The bonding process is quick and easy. Start your application today by filling out our short online form for a free, no-obligation bond quote.

To apply online, you’ll need to give us a few basic details about your business and your circumstances. We’ll then be able to give you a free bond quote. If you’d like an exact bond price, you’ll need to complete a full application with attached paperwork. Once we have your information, we’ll send you an exact bond cost in no time.

So, whether you’re a South Carolina residential builder, an auto dealer, a pawnbroker or one of the state’s hard working general contractors, we can help you with all your surety bond needs.

Looking for more information on getting bonded? Our How to Get Bonded page will tell you everything you need to know.

How Much Does a South Carolina Surety Bond Cost?

The cost of South Carolina bonds varies depending on the bond, your location and your finances. Your bond premium (the amount you pay for your bond) is directly linked to the South Carolina surety bond amount that you are required to post.

For some types of surety bond, the bond premium is the same across the US. However, in other cases, the surety bond cost is decided by a state or local authority or calculated depending on your individual circumstances.

Generally, the bond premium is around 1% to 10% of the total bond amount. Although you might be asked to pay more if you have a bad credit score or your surety company deems you to be a high risk applicant.

The only way to find out exactly how much it will cost to get bonded is to apply for a bond quote. When you apply, your bond company will look at your personal credit score, your business finances and your professional experience.

If your surety considers you a low-risk applicant, you can expect to pay a lower bond premium. If they think that you’re high-risk, you’ll be asked to pay a higher premium, possibly up to 15% of the bond amount. Either way, Lance Surety Bonds will find you the best possible rate for your bond.

Can I Get A South Carolina Surety Bond With Bad Credit?

It can be more difficult to fulfill your surety bond requirements if you have bad credit. This is because surety companies consider a poor credit score a sign that you might be high risk.

To make it easier for applicants with bad credit to get bonded, Lance Surety Bonds has designed a Bad Credit Program. This program helps applicants with bad credit to obtain the South Carolina surety bond they need, so that bonding is not an obstacle to professional success.

The program is aimed at applicants with a low credit score, liens, past bankruptcies or civil judgments. If you apply for the program and are successful, you can expect a bond premium in the range of 5%-15%. The higher price is there to mitigate the increased risk in bonding.

While the bond premium you pay may be a little higher, if you get bonded through Lance Surety Bonds you’ll still get the best rate for your particular case. We’ve forged close relationships with numerous A-rated, T-listed surety companies, giving us the ability to find the best bonding option for you, no matter what your circumstances.