Idaho 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 Idaho surety bond needs.

Required Surety Bonds in Idaho

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

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Required Surety Bonds in Idaho

Idaho surety bonds, like all surety bonds, are broadly categorized as construction and contractor bonds, license and permit bonds, or court bonds.

Idaho Construction & Contractor Bonds

The state of Idaho has passed legislation—the Public Contracts Bond Act—that requires contractors to meet certain bonding requirements before being allowed to bid or work on publicly-funded construction projects. Municipalities may impose similar bonding requirements for local public works projects.
Performance bonds and payment bonds are most commonly required, in an amount equal to 85% of a contract’s total value.

Idaho License & Permit Bonds

Idaho licenses certain types of businesses and professionals, such as car dealers and construction contractors, at the state level. The purchase of a license and permit surety bond is typically a required step in the licensing process. Some municipalities and counties also require local licensing of contractors before they can work legally in those jurisdictions.

Idaho Court Bonds

Idaho’s courts, at any level of the judicial system, sometimes require people with business before the court to purchase a surety bond. Plaintiff and Defendant bonds may be required from those appealing a court decision, particularly when contested property or large damage awards are involved.
Additionally, anyone appointed to serve as executor of an estate, guardian of a minor, or any other fiduciary capacity may be required to purchase a probate bond.

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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.