Maine Surety Bonds

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Surety Bond Professionals has been in the surety business for more than three decades. Our highly professional agents will be able to help you with all of your surety bond needs in Maine. Continue reading about common surety bonds below, or request a convenient online quote.

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

Required Surety Bonds in Maine

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

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Maine Surety Bond Requirements

In Maine, as in most states, the three main categories of bonds are construction bonds, license and permit bonds, and court bonds. There are certainly other types of bonds, but these are the three most common types. Feel free to reach out to us with specific requests.

Maine Construction Bonds

In Maine, construction bonds—predominantly bid bonds, performance bonds, and payment bonds—are primarily required by municipalities rather than by a state agency. They are typically required in order for a contractor to be considered for public works projects and may also be required by some private project owners.

  • A bid bond guarantees that the contractor will accept the job if chosen as the winning bidder. Learn more
  • A performance bond, also known as a contract bond, guarantees that the contractor will complete the project, abiding by all contract terms and applicable laws and regulations. Learn more
  • A payment bond guarantees the contractor’s timely payment of suppliers, subcontractors, and workers, according to the terms of the contract. Learn more

We welcome your questions about the construction bonds that contractors working in Maine may need to obtain.

Maine License & Permit Bonds

Maine’s Department of Professional and Financial Regulation oversees the agencies and boards that issue licenses needed to practice certain professions and operate certain types of businesses in the state. In many cases, a license and permit bond is required in order to obtain a license. This provides financial protection for the state and for consumers against losses incurred as a result of the unethical or unlawful practices of a bonded business or professional.
For example, the Office of Consumer Credit Regulation requires license and permit bonds for debt collectors, debt management firms, loan brokers, and real estate property preservation services. Perhaps the most common license and permit bond is the one required by the Bureau of Motor Vehicles for motor vehicle dealers.
If you know the bond you need, apply today. If you have any questions, feel free to contact us for more information.

Maine Court Bonds

Courts in Maine require surety bonds from:

  • People involved in appeals, to ensure that the losing party returns disputed property or pays court-ordered damages and legal fees. Learn more
  • Court-appointed guardians, custodians, estate executors, bankruptcy trustees and others with the authority to manage the assets of another—to guarantee that these fiduciaries carry out their duties in accordance with the law and the rules of Maine courts. Learn more

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Our experienced professionals will gladly answer any questions you may have about Maine 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.