Nebraska 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 Nebraska surety bond needs.

Required Surety Bonds in Nebraska

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

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Required Surety Bonds in Nebraska

All Nebraska surety bonds fall into one of these three broad categories: construction and contractor bonds, license and permit bonds, or court bonds.

Nebraska Construction & Contractor Bonds

Nebraska’s “Little Miller Act” requires performance and payment bonds from contractors on state public works projects valued above $15,000. A similar bonding requirement exists at the local level for municipal public works projects valued above $10,000.

Nebraska License & Permit Bonds

Nebraska issues a wide range of occupational and professional licenses. For example, just to name a few, licenses are issued to auto dealers, accountants, and electricians. In many cases, purchasing a license and permit surety bond is a mandatory step in the licensing process.

Nebraska Court Bonds

Nebraska courts require two different types of surety bonds serving two different purposes: appeal bonds and probate (fiduciary) bonds. An appeal bond is required when a court ruling is being appealed, especially if contested property is involved. Anyone being appointed as executor of an estate, guardian of a minor, or in some other capacity that involves managing another person’s assets may be required to purchase a probate bond to ensure proper performance of fiduciary duties.

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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.