New Mexico Surety Bonds

  • Home
  • New Mexico Surety Bonds

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 New Mexico surety bond needs.

Required Surety Bonds in New Mexico

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

WordPress Tables Plugin

Don’t see the bond you need listed? Get in touch and let our experts help!

Required Surety Bonds in New Mexico

The three broad categories of New Mexico surety bonds are construction and contractor bonds, license and permit bonds, and court bonds.

New Mexico Construction & Contractor Bonds

New Mexico state agencies sponsoring public works projects over a certain dollar amount require contractors to purchase a bid bond as a condition for submitting a bid. The winning bidder must then purchase other construction-related bonds, such as a performance bond, payment bond, maintenance bond, or another type of contractor surety bond. Similar bonding requirements often exist for public works projects at the municipal level.

New Mexico License Bonds

Through a number of boards and commissions, the New Mexico Regulation and Licensing Department issues licenses in more than 30 different professions and trades. In many cases, becoming licensed requires the purchase of a license surety bond to ensure that business is conducted in accordance with New Mexico law. Some municipalities also require local licensing or permitting and have a similar surety bond requirement.

New Mexico Court Bonds

New Mexico courts may require appeal bonds and probate bonds. A plaintiff or defendant may need to purchase a surety bond when appealing a court decision, especially when contested property is involved. A probate bond may be required from anyone appointed as executor or an estate, guardian of a minor, or in any other fiduciary capacity.

Get A Quote

Our experienced team at Surety Bond Professionals will provide you with the most competitive terms on the specific New Mexico surety bond you need. Apply now!

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.