Connecticut Surety Bonds

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Surety Bond Professionals is a family owned and operated bonding agency with over 30 years of experience. Headquartered in Massachusetts, we proudly serve clients in the entire New England area and nationwide. With access to over 25 surety markets, our expert agents are ready to assist with all of your Connecticut surety bond needs.

Continue reading below to learn more about common Connecticut bonding requirements, or use our online form to request a quote now.

Required Surety Bonds in Connecticut

Typical Connecticut bonds include (click on any for more info):

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Required Surety Bonds in Connecticut

Most of the surety bonds issued in Connecticut fall into one of three broad categories: construction and contractor bonds, license and permit bonds, and court bonds. Although there are other types of surety bonds, these are the ones that are most commonly needed.

Connecticut Construction Bonds

At Surety Bond Professionals, we have been specializing in construction surety for over 30 years. Our agents can help you to understand your bonding requirements and get you bonds at competitive rates.
Contractors who are not required to purchase a contractor license bond in Connecticut will still need to meet state and local requirements for other types of construction surety bonds—such as bid bonds, performance bonds, and payment bonds. These are typically required by state and local sponsors of public works projects.

  • A bid bond guarantees that a contractor will accept the project if awarded a contract.
  • A performance bond guarantees that the contractor will fulfill all contractual obligations in a lawful and ethical manner.
  • A payment bond guarantees that the contractor will pay suppliers, subcontractors, and laborers according to the terms of the contract.

Connecticut License & Permit Bonds

As the name suggests, license and permit bonds are required in order to obtain or renew a license to practice certain professions or to operate certain kinds of businesses in the state of Connecticut. They help ensure that the laws governing such businesses are obeyed and that consumers and taxpayers don’t suffer any financial loss due to the unlawful or unethical actions of licensees. For example:

  • Connecticut Department of Banking issues licenses to collection agencies, debt negotiators, mortgage brokers, lenders, and services, and money transmitters. A license bond is a requirement for becoming and remaining licensed in these professions.
  • Department of Motor Vehicles licenses new and used motor vehicle dealers, leasing or rental companies, and repairers. Each of these licenses carries a bond requirement.
  • Plumbers, electricians, HVAC professionals and certain other specialty contractors must obtain a license bond.
  • Nonresident contractors (those based in another state) may be required to purchase a surety bond to guarantee payment of taxes owed to the state of Connecticut.

Connecticut Court Bonds

There are two main reasons that Connecticut courts impose a bond requirement:

  • To ensure that people who lose an appeal pay any court-ordered damages, court costs, and legal fees, and
  • To ensure that executors, guardians, conservators and others with fiduciary responsibilities perform their duties in compliance with applicable laws and the rules of the court

Speak with an agent today for assistance with your court bonding requirements and needs, or simply request a quote online.

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Our experienced professionals will gladly answer any questions you may have about Connecticut surety bonds to help you get the bonds you need. Request a quote today!

Frequently Asked Questions

There are three parties to every surety bond agreement, which is a legally binding contract:

  • The “obligee” is the state or local agency requiring the surety bond.
  • The “principal” is the party required to purchase the bond.
  • The “surety” is the company underwriting and issuing the bond.
  • The obligee sets the required amount of the bond, which is the maximum amount that will be paid out on a claim. The obligee also spells out the conduct required of the principal in order to avoid claims against the surety bond.

Any party who suffers a financial loss because the principal has violated the terms of the bond has the right to file a claim against the bond. The principal is solely responsible for paying all valid claims.

However, the surety will often pay a claim and wait to be reimbursed by the principal. This ensures timely settlement of the claim and gives the principal some time to gather the necessary funds.

What the principal in a bond agreement actually pays for a surety bond is a small percentage of the required bond amount established by the obligee. That percentage, known as the premium rate, is determined by the surety company based on the applicant’s credit score and other indicators of the likelihood of claims being filed against the bond. Those with good credit can expect a rate of 1-3%. Those with poorer credit may pay a higher premium.
No claim against a bond will be paid until the surety company has investigated and determined that it is valid. After making payment to a claimant, the surety company will demand reimbursement from the principal.