Rhode Island Surety Bonds

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Surety Bond Professionals has been meeting the bonding needs of clients in Rhode Island and nationwide for more than 30 years. Our experienced and knowledgeable agents are ready to help with any Rhode Island surety bonds you may need.

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

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Required Surety Bonds in Rhode Island

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

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Required Surety Bonds in Rhode Island

In Rhode Island, as in other states, the three main categories of surety bonds need are: construction bonds, license bonds, and court bonds. Learn more about the requirements for each below.

Rhode Island Construction Bonds

At Surety Bond Professionals, construction surety is our specialty. You can rely on our surety bond experts to answer your questions and get you competitive prices on the bonds you need.
Requirements

  • The Miller Act requires surety bonds in order for contractors to bid or work on federal public works projects of $100,000 or more.
  • Rhode Island has its own “Little Miller Act” that requires contractors to post both a performance bond and a payment bond in order to take on state-funded projects in excess of $50,000. The required bond amount in such cases is between 50% and 100% of the contract value.
  • Municipalities and private project owners sometimes require construction bonds for large contracts. Check your contract to confirm all bonding requirements.

Common Bond Types

  • Performance bonds guarantee that the contractor will complete the project in accordance with the contract and all applicable laws and regulations. Learn more.
  • Payment bonds guarantee that the contractor will pay all suppliers, subcontractors, and workers according to the terms of the contract. Learn more.
  • Bid bonds ensure that the low bidder on a construction bid will move forward with the contract. Learn more.

There are other types of construction bonds that may be required or recommended for your project. For assistance, contact our knowledgeable agents today.

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Rhode Island License & Permit Bonds

In Rhode Island, a number of businesses are licensed by the Department of Business Regulations. These include:

  • Alcohol-related businesses (retailers, wholesalers, warehouses)
  • Businesses that sell and service mortgages and other loans (loan brokers, mortgage brokers, mortgage lenders, and third-party loan servicers)

These and other businesses licensed at the state level may be required to purchase a license and permit bond to guaranty that they will operate lawfully and ethically. The bond provides financial protection for the state and for consumers. Note that some municipalities have their own license and bonding requirements.

Rhode Island Court Bonds

In Rhode Island there are two main types of court bonds:

  • Appeal bonds may be required of a plaintiff or defendant to ensure the court-ordered return of property or the payment of damages, court costs, or legal fees following an unsuccessful appeal or other adverse ruling.
  • Fiduciary bonds guarantee that court-appointed executors, guardians, or others with fiduciary responsibilities carry out their duties in compliance with the law and the rules of the court.

Speak with one of our experts today about your need for a court bond, or request an online quote.

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Our experienced professionals will gladly answer any questions you may have about Rhode Island surety bonds to help you get the bonds you need. Request a quote today!

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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.