A surety bond is a three-party agreement between the bonded, principal and surety. They are required by law in certain situations. It is a form of credit used to pay for any valid claims should you not fulfill your obligation. A surety bond guarantees that you will fulfill obligations required by a contract, government agency or court order. It is not an insurance policy. South Carolina requires bonding for various professions including investment brokers, contractors, insurance agents and motor vehicle dealers.
Select the appropriate type of bond that you are required to obtain. There are three different types of surety bonds. Commercial bonds are required for many business owners, such as auctioneers, pawnbrokers and private detectives, in order to legally operate under South Carolina state guidelines. Contract bonds including bid bonds, construction bonds, payment bonds and performance bonds are generally required for contractors to complete building projects in South Carolina. Court bonds are commonly required for court appointed custodians, executors of estates and guardians.
Contact a bond agent to begin your application. Applications can be completed online at most agency websites. You will need the complete name, address, birth dates, financial statements and social security numbers for all persons and their spouses that are to be named on the bond. You will also need to provide the name of the agency that is requiring the bond. It typically takes between one hour and four days for bond approval.
Submit payment to the agency for your approved bond. Premiums are typically based on your credit rating, the type of bond required and the amount of the bond. Bonds are issued for a pre-determined time frame and are required to be renewed upon expiration.
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