Missouri 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 Missouri surety bond needs.

Required Surety Bonds in Missouri

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

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Required Surety Bonds in Missouri

Nationwide, there are three broad categories of surety bonds, and Missouri is no different: construction and contractor bonds, license and permit bonds, and court bonds. Within each of these categories, there are multiple types of surety bonds.

Missouri Construction & Contractor Bonds

Both state and local government agencies require bidders and contractors awarded public works projects over a certain dollar value to purchase certain surety bonds. Bid bonds, performance bonds, and payment bonds are the most common.
Construction and contractor bonds provide financial protection for subcontractors, workers, and suppliers as well as for public monies used to fund a project.

Missouri License & Permit Bonds

People applying for certain types of business or occupational license in Missouri may be required to purchase a license or permit bond at either the state or local level. Motor vehicle dealers throughout the state, for example, are licensed by the Missouri Motor Vehicle Bureau. Construction contractors, however, are not licensed at the state level but may be required to obtain a local license or permit.
A license bond obligates the bonded individual to conduct a lawful and ethical business or be liable for compensating anyone with a valid claim against the bond.

Missouri Court Bonds

Courts at every level of Missouri’s judicial system may impose a bonding requirement. There are two main types of court bonds:

  • Appeal bonds that must be purchased by plaintiffs or defendants appealing a court decision that involves contested property or financial damages
  • Probate bonds, which are often required from people serving in a fiduciary capacity, such as an executor of an estate, guardian of a minor, or custodian of an adult.

Speak with a Surety Bond Professionals agent today to discuss your bonding needs.

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Whatever your Missouri surety bond needs may be, you can count on the team at Surety Bond Professionals to meet them at a competitive rate.

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.