Surety bonds continue to rise in popularity as a new to transact business. However, the process of applying for surety bond coverage in North Carolina can become complicated. This guide will take an in-depth look at surety bonds so that you’ll have a clear idea of their benefits.
Surety Bond Information
Surety bond are a contract between multiple parties, which outlines how the surety financially guarantees that the principal will act in accordance with the terms of the bond. You are named as the principal. The insurance company writing the bond is known as the surety. The part requiring the bond is known as the obligee. There are various types of surety bonds and requirements based on the industry, state, and city that your business is operating in. In some states, you may need to complete extra documentation before the bond is approved. Also, keep in mind that some bonds are issued right away while other bonds have to go through an underwriting process to help figure out the price. You should also be aware that some surety bonds are separate from business licensing. You’ll have to research the various regulations before obtaining a surety bond.
How to Get a Surety Bond
Figure Out the Type of Bond You Need
As you start researching surety bond coverage in North Carolina, you’ll have to learn about the state requirements. Generally, the cost of your surety bond is somewhere between 1-5% of the total bond amount.
Gather Surety Bond Information
In order to apply for a surety bond, you’ll need to review all necessary details besides the name of your business and the address. You’ll also need a license number and proof of ownership.
You can look for websites that offer you a free quote. This way, you will also enjoy the benefits of competitive pricing.
Finalizing the Transaction
Once you have settled on a seller, you can carry out the transaction on their online platform.
Filing Your Surety Bond
Be sure to contact the obligee that is requiring this bond to find out if they want a raised or digital seal. The final step is to sign your bond and submit it to the obligee.
Popular North Carolina Surety Bonds
Business Service Bond
If you employ individuals who work in different clients’ homes throughout North Carolina, consider purchasing a business service bond. The bond helps protect clients against possible theft. Business service bonds are marketing tools that can help give you a competitive advantage. Without a business service bond, you risk possibly losing a job to your competition. Having a business service bond is a sign to possible clients that you are credible and trustworthy.
Certificate of Title Bond
A Certificate of Title Bond is mandatory if your business tracks down debt owed to other companies. These bonds stand out because they are issued instantly. However, large bonds have to go through the underwriting process. The bond must be approved by the North Carolina DMV and the vehicle must pass an emissions inspection. The North Carolina Commissioner of Insurance requires people who don’t have proof of ownership of their vehicles to post surety bonds as a way of getting a bonded title. The bond amount should equal double the vehicle’s appraisal value.
Insurance Broker Bond
The North Carolina Department of Insurance mandates that insurance brokers post a surety bond before starting their business operations. By getting the bond, the broker agrees that they will act in compliance with the North Carolina General Statutes. All transactions should be handled in an ethical manner.
The experts here at Pittman Insurance Group, LLC will ensure that you get the surety bond that you need in a timely manner. We will guide you through the process from start to finish. We will make sure that you have a clear understanding of the bond requirements.