Georgia Surety Bonds

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Surety Bond Professionals is a family-owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your Georgia surety bond needs.

Required Surety Bonds in Georgia

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

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Required Surety Bonds in Georgia

In Georgia, as in all other states, there are three broad categories of surety bonds: construction and contractor bonds, license and permit bonds, and court bonds.

Georgia Construction & Contractor Bonds

The state of Georgia requires contractors to purchase surety bonds as a condition of bidding on or being awarded a contract for a public works project over a certain dollar amount. There may be a similar requirement for municipal public works projects. Most commonly, the specific bonds required are bid bonds, performance bonds, and payment bonds.

Georgia License & Permit Bonds

Georgia licenses certain professionals and types of businesses at the state level, such as mortgage lenders, brokers, and processors, auto dealers, and construction contractors. Some municipalities and counties have their own licensing and bonding requirements. License and permit bonds guarantee that the bonded individual will abide by applicable laws and regulations.

Georgia Court Bonds

Georgia courts can require plaintiffs and defendants appealing court decisions to purchase a surety bond, usually in cases involving contested property. Courts can also require probate bonds or fidelity bonds from people taking on the role of executor of an estate, guardian of a minor, or custodian of an adult.

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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.