Vermont Surety Bonds Explained
Many people are confused when it comes to surety bonds. They are a regulatory requirement, which many businesses need to satisfy before they are allowed to obtain a license or permit in Vermont.
A typical surety bond agreement involves three sides: a principal, an obligee, and a surety. The principal is the side which obtains the bond as mandated by the obligee. The surety is a bonding company, which underwrites the bond and assumes legal responsibility for the actions of the principal.
Lance Surety Bonds can help you obtain any type of surety bond, regardless of your credit score. We work with a variety of A-rated and T-listed bonding companies, allowing us to offer the lowest possible rates.
You can find the surety bond you are looking for in the table below and begin your online application. If you want to learn more about surety bonds in Vermont, check out the Questions section below, or call us at (877)-514-5146 and let us know how we can help.
Find Your Vermont Surety Bond
|Investment Advisor (Blue Sky) Bond||Investment Advisor Bond||Department of Financial Regulation||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||Mortgage Broker||Commisioner of Banking, Insurance, Securities and||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||Mortgage Lender||Commissioner of Banking & Insurance||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||Loan Servicer||Commissioner of Banking & Insurance||Apply Now|
|Auto & Mobile Home Dealers (New & Used) Bond||Motor Vehicle Dealer||VT DOT - Agency of Transportation||Apply Now|
|Professional Licenses (All Other) Bond||Town of Highgate, VT Pawn Shop Bond||Town of Highgate||Apply Now|
|Alcohol (All Others) Bond||Agent to Sell Spirituous Liquors Bond||Vermont Dept of Liquor Control||Apply Now|
|Sales, Use & Consumer Tax Bond||BOND TO STATE OF VERMONT||State of Vermont Dept Taxes||Apply Now|
Questions about Surety Bonds in Vermont
Who needs a Vermont surety bond?
There are different circumstances under which someone might have to post a surety bond in the state of Vermont. Let’s take a look at the three main surety bonds categories:
License bonds are required from different businesses. Without a license bond they can’t apply for a business license or permit. The purpose of these bonds is to safeguard the interests of consumers.
Contract bonds are often required during both public and private construction projects. They ensure that contractors complete the project as described in the contract.
Court bonds are required from individuals appointed as fiduciaries or guardians by a court, to ensure that they serve the interests of the parties they represent. Appealing a court ruling may also require a court bond.
How much does a Vermont surety bond cost?
То calculate your bonding cost, you need first to know the total bond amount of your surety bond. Each surety bond has a total bond amount set by the state. It refers to the maximum penal sum, i.e. what a claimant can get if their claim is proven.
Once you know the total bond amount required, you can get a rough estimate of your bond premium. For good credit applicants it is usually in the range of 1% - 4% of the total amount.
For more detailed information, read our What Does a Surety Bond Cost? page.
Bad Credit Surety Bonds in Vermont
Some bonding underwriters may be less willing to underwrite surety bonds for applicants with bad credit, because they consider them high-risk. After all, if a principal triggers a claim, the bonding company is also legally responsible.
However, for most types of bonds, applicants can still get bonded through our Bad Credit Surety Bonds Program. We do our best to get your application approved despite your credit issues. Bond premiums usually vary between 5% and 15%
How can I get bonded in Vermont?
Applying for a surety bond is not a lengthy process. Our online application is a fast and secure way to apply in just a few simple steps.
After you submit the application form, we will contact you with your free bond quote. When your payment is processed and you sign an indemnity agreement with the bonding company, we’ll issue your bond in as little as 2 business days.
Most Popular Surety Bonds in Vermont
The Vermont Department of Financial Regulation requires mortgage brokers and lenders and lenders to get licensed and post a surety bond to protect the interest of homebuyers in the state.
Mortgage lenders are also required to get licensed and bonded, which ensures compliance with state rules and regulations, and aims to prevent fraudulent business practices.
Vermont auto dealers need to post a surety bond in an amount between $20,000 and $35,000, based on their yearly volume of sales.
Sales tax bonds offer a financial guarantee to the state that a business will declare their revenue in a timely and correct manner.
Also known as a liquor bond, this type of sales tax bond is required from entities involved in the manufacturing, distribution, or sales of alcoholic beverages.
Adjusters who supervise payment distributions will need to get licensed and bonded to do so in Vermont. Total bond amounts vary, but the minimum is $50,000