South Dakota Surety Bonds Explained
Obtaining a South Dakota surety bond is needed in various situations for both businesses and individuals in the state. You may have to get bonded for your professional licensing, if you want to participate in construction project bidding, or to satisfy a court requirement.
The surety bond functions as a contract between three entities. The principal is the one who has to provide a bond to meet certain criteria. The authority that requires the bonding is the obligee. The third party is the bond provider, which is the surety.
You can delve into more details about the bonding costs,as well as the process in the following sections. The table below will allow you to search directly for the bond you need.
Find Your South Dakota Surety Bond
|Investment Advisor (Blue Sky) Bond||Uniform Surety Bond||Division of Securities||Apply Now|
|Insurance Agents/Brokers Bond||Discount Medical Plans Bond||SD Dept. Labor & Regulation Division of Insuranc||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||Mortgage Company Bond||Division of Banking, State of South Dakota||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||Mortgage Lender||Division of Banking||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||MORTGAGE LENDER||DIVISION OF BANKING||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||Money Lender Bond||Division of Banking||Apply Now|
|Auto & Mobile Home Dealers (New & Used) Bond||Vehicle Dealer||Division of Motor Vehicles||Apply Now|
|Auto & Mobile Home Dealers (Used Only, No New) Bond||Vehicle Dealer||Division of Motor Vehicles||Apply Now|
|Sales, Use & Consumer Tax Bond||South Dakota Department of Revenue & Regulation Un||South Dakota Department Of Revenue and Regulations||Apply Now|
|Appraisal Management||Appraisal Management Company Registration Bond||Department of Labor and Regulation||Apply Now|
Questions about Surety Bonds in South Dakota
How much does a surety bond cost in South Dakota?
You can calculate the price of the South Dakota surety bond you need in a few steps. The first thing you need to know is the total bond amount that you have to obtain. Each surety bond has a different bond amount, which refers to the maximum coverage the bond can offer to potential claimants.
Once you know this amount, the surety that you apply with can determine your bond premium, which is the price that you have to pay for the bonding. The most important factors that shape your Surety bond cost include your personal credit score and business financials. Good credit applicants (with a FICO score of 700 or above) pay the standard market rate, which is between 1% and 4% of the total bond amount.
Can I get bonded with problematic finances?
The reason your personal credit score is important to surety companies is because it is the best way to measure the risk involved in underwriting a surety bond for you. For this reason, certain surety bonds can be hard to obtain if you have bad credit.
Lance Surety Bonds has developed an exclusive Bad Credit Surety Bonds program for applicants struggling with financial issues. Bond premiums for bad credit applicants are higher due to the increased bonding risk and are typically in the range of 5% to 15%.
How can I get bonded?
Once you provide us with your personal and business information, we will send you a free bond quote. If you are happy with the price, you can purchase the bond straight away. You will then receive a digital and a hard copy of the bond.
If you want to learn more about the way bonding works, you can refer to the in-depth How to Get Bonded page.
Have questions about your application? Call us at (877)-514-5146 to get help from our bonding experts.
Who Needs to Get a South Dakota Surety Bond
As in other states, in South Dakota you may need to obtain one of the three main types of surety bonds.
You may have to get license bonds as part of your professional licensing. They are typically required of businesses such as auto dealerships, mortgage brokerships, and construction companies.
If you are a construction contractor, you may need to post contract bonds in order to participate in certain projects. Most federal and state construction contracts require posting contract bonds. They ensure that you will execute the project in a timely manner and to a set standard, as well as that you will make all due payments to suppliers and subcontractors.
Court bonds may be needed in certain court cases. For example, if you want to appeal a court judgement to a higher instance, you will need an appeal bond first. A fiduciary bond may be required of you if you are appointed to act as a fiduciary.
Most Popular Surety Bonds in South Dakota
The South Dakota Department of Transportation requires all dealers to post a $25,000 surety bond. The bond is required in order to protect any person damaged from a dealer’s failure to comply with the state provisions regulating vehicle dealers.
The state Department of Financial Institutions requires mortgage brokers to provide a bond.
Mortgage lenders and bankers in the state need to obtain this surety bond, which guarantees their compliance with state laws.
Video lottery licensees in South Dakota have to obtain a lottery bond to operate legally.
According to federal law, freight brokers in all states need to be licensed and maintain an active $75,000 freight broker bond, which offers protection to shippers and carriers.
To operate legally in South Dakota, surplus line insurance brokers need to get a $2,000 surety bond.